Other Health Insurance Concepts

Question 1

What is the tax advantage of the employer paying premiums for its employees for disability income insurance?

Answer 1

Premiums are deductible as a business expense

Question 2

What is subrogation in health insurance?

Answer 2

The legal process that gives the insurer the right to seek recovery from a third party that was responsible for the loss after the insurer has paid the insured for the loss

Question 3

What are the four types of workers compensation benefits?

Answer 3

Medical, Income, Rehabilitation and Death benefits

Question 4

What type of disabilities will be covered by occupational coverage?

Answer 4

Disabilities that result from accidents or illnesses that occur on or off the job

Question 5

How are benefits received by the business from a key person disability insurance?

Answer 5

Income tax free

Question 6

In health insurance, when would an excess plan pay benefits?

Answer 6

After the primary plan has paid its full promised benefit, the excess plan will pay the balance

Question 7

According to the Coordination of Benefits provision, if both parents have coverage for a child from their employers policies, which policy will pay first?

Answer 7

The order of payment will be determined by the birthday rule: the coverage of the payment of the parent whose birthday is earlier in the year will be considered primary

Question 8

In group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?

Answer 8

100%

Question 9

What is the purpose of managed care health insurance plans?

Answer 9

To control health insurance claims expenses

Question 10

Under a fully contributory health plan, how are benefits received by the employee?

Answer 10

Income tax free

Question 11

What type of health insurance is sold to small business owners to reimburse them for the overhead expenses?

Answer 11

BOE - Business Overhead Expense insurance

Question 12

What are the five basic characteristics of managed care plans?

Answer 12

Controlled access to providers, Comprehensive case management, Preventive care, Risk sharing, and high quality care

Question 13

What is a birthday rule in a coordination of benefits provision?

Answer 13

The coverage of the parent whose birthday is earlier in the year is considered primary

Question 14

Under what employer-provided plan are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?

Answer 14

Disability income

Question 15

If the insureds share in the cost of health insurance premiums with the employer, this would be known as what type of group health plan?

Answer 15

Contributory

Question 16

When a business receives benefits from its key person disability insurance, how are those benefits taxed?

Answer 16

The key person disability insurance benefits are received tax free

Question 17

What type of insurance covers an employee who is hurt on the job?

Answer 17

Workers compensation

Question 18

How are individually-owned disability income benefits taxed once received by the insured?

Answer 18

Disability benefits are not taxed; they are received income tax free

Question 19

For how long do short-term disability group plans pay benefits?

Answer 19

For up to 52 weeks

Question 20

What type of health insurance covers partners or corporate officers of a closely held business?

Answer 20

Disability buy-sell