Insurance Flashcards
What company might use stop-loss coverage to partially self-insure employee medical insurance program?
Company with less than 100 employees
Vicarious Liability
Respondeat Superior
What is not covered in a homeowner’s policy?
Earthquake
Flood
Intentional Loss
Umbrella Liability Insurance
Provides Excess Coverage for underlying insurance policy
Almost always a recommendation on the test
True Statements of Medicare Part B
Benefits are subject to calendar-year deductible. Only 80% of Medicare approved charges are paid.
Cost of Dr. Visits are covered in and out of the hospital
Part B is voluntary
Outpatient Services are covered
COBRA Qualifying Events
Must be company with 20 employees
- Voluntary or involuntary termination (18 mos.)
- Employee’s death, divorce, legal separation, or eligibility for Medicare (36 mos.)
- Loss of dependent status (36 mos.)
Do HSA distributions count toward gross income?
Not for qualifying medical distributions
Nonforfeiture Options
If someone decides to discontinue premiums
- Cash Option
- Reduced Paid Up
- Extended Term
Cash Option NF
Policy surrendered for cash value less any indebtedness. 6mo delay.
Reduced Paid-Up
Face amount reduced. Paid up insurance will be amount cash value would purchase.
Paid Up Term
Cash value pays premiums until the cash value is zero.
Dividend Options (CRAPO)
Cash
Reduced Premium
Accumulate with Interest
Paid-Up Options
One Year Term
Settlement Options (CIFF4)
Cash
Interest Only
Fixed Period
Fixed Amount
4 Life Income
Term Insurance
- Short Term Need
- Low Cost
- No Cash Value
Annual Renewable Term
- Premiums increase annually
- Benefit remains level
