Other Accident & Health Topics

Question 0

parties to a contract

Answer 0

must be capable of entering into a contract in the eyes of the law.
legal age, mentally competent to understand the contract, not under the influence of any drugs

Question 1

Requirements of a contract

Answer 1

Agreement - offer and acceptance
Consideration
Competent Parties
Legal Purpose

Question 2

Insurable interest

Answer 2

is proven by love and affection, economic or financial loss

in life and health it is required at the time of policy issue

Question 3

MIB Medical Information Bureau

Answer 3

nonprofit organization, consisting of members of insurance companies. which receives and maintains adverse medical information from insurance companies. it is a systematic way for insurance companies to share information that may have been discovered by other companies.

Question 4

association group coverage

Answer 4

can buy group insurance for its members:
must have at least 100 members
be organized for a reason other than buying insurance
have been active for at least two years
have a constitution, by-laws and hold at least annual meetings

Question 5

Coordination of Benefits

Answer 5

if both parents name their children as dependents for health insurance the order of payment will be determined by the birthday rule. the coverage of the parent whose birthday is earlier in the year will be considered primary. occasionally the gender rule may apply, then the father’s coverage is primary.

Question 6

COBRA benefits

Answer 6

coverage is extended for up to 18 months. the former employee must exercise extension of benefits within 60 days of separation.

for death or divorce the period is 36 months for the dependents.

Question 7

MEWA coverage

Answer 7

multiple employer welfare associations. a group of companies organize in order to provide benefits to themselves and employees at a lower cost.

Question 8

Individual Disability Income

Answer 8

Premiums - not deductible

Benefits - not taxable

Question 9

Group Disability Income

Answer 9

Premium - Deductible for employer

Benefits - taxable

Question 10

Individual Medical

Answer 10

Premiums - not deductible

Benefits - not taxable

Question 11

Group Medical

Answer 11

Premiums - deductible by employer

Benefits - not taxable

Question 12

Individual Long-term care

Answer 12

Premiums - not deductible

Benefits - not taxable

Question 13

group long-term care

Answer 13

Premiums - deductible for employer

Benefits - not taxable

Question 14

Individual medicare supplement

Answer 14

Premiums - not deductible

Benefits - not taxable

Question 15

group medicare supplement

Answer 15

Premiums - deductible for employer

Benefits - not taxable

Question 16

Buy-sell

Answer 16

Premiums - not deductible

Benefits - not taxable

Question 17

Key person

Answer 17

Premiums - not deductible

Benefits - not taxable

Question 18

Business overhead expense

Answer 18

Premiums - deductible for employer

Benefits - taxable

Question 19

MSAs

Answer 19

Premiums - deductible

Benefits - not taxable when used for medical expenses
taxable when taken out at end of year

Question 20

FSAs

Answer 20

Premiums - not deductible

Benefits - not taxable

Question 21

HRAs

Answer 21

Premiums - deductible

Benefits - not taxable

Question 22

HSAs

Answer 22

Premiums - deductible

Benefits - not taxable when used for medical expenses
taxable plus 20% penalty under 65, no penalty over 65 for non medical use