Other Insurance Concepts [Health] Flashcards
What are the four types of workers compensation benefits?
Medical, income, rehabilitation and death benefits
In health insurance, when would an excess
plan pay benefits?
After the primary plan has
paid its full promised benefit, the excess plan will pay
the balance
What is the purpose of managed care health
insurance plans?
To control health insurance claims expenses
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?
Contributory
What type of insurance covers an employee
who is hurt on the job?
Workers compensation
How are individually-owned disability income
benefits taxed once received by the insured?
Disability benefits are not
taxed; they are received income tax free
When a business receives benefits from its
key person disability insurance, how are
those benefits taxed?
The key person disability insurance benefits are received tax free
Under a fully contributory health plan, how are
benefits received by the employee?
Income tax free
What is the tax advantage of the employer
paying premiums for its employees for disability income insurance?
Premiums are deductible as a business expense
What type of health insurance is sold to small
business owners to reimburse them for the
overhead expenses?
BOE - Business Overhead Expense insurance
According to the Coordination of Benefits provision, if both parents have coverage for a child from their employers’ policies, which policy will pay first?
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
How are benefits received by the business
from a key person disability insurance?
Income tax free
What is a birthday rule in a coordination of
benefits provision?
The coverage of the parent whose birthday is earlier in
the year is considered primary
What is a birthday rule in a coordination of
benefits provision?
The coverage of the parent whose birthday is earlier in
the year is considered primary
In group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%
