Unit 24 Flashcards
Which of the following statements about group health insurance is CORRECT?
(A) A group health insurance contract is between the insurance company and the employee.
(B) Group health plans provide more extensive benefits than individual health plans.
(C) If a group plan provides medical expense benefits, it must be with a comprehensive policy.
(D) COBRA requirements are directed at employers with 20 or fewer employees.
(B) Group health plans provide more extensive benefits than individual health plans.
Which type of group health coverage typically does NOT contain a conversion privilege?
(A) Basic medical expense
(B) Comprehensive medical expense
(C) Disability income
(D) Accidental death and dismemberment
(D) Accidental death and dismemberment
Which of the following can an individual include as qualifying expenses for purposes of determining a medical tax deduction?
(A) Premium contributions paid by the employer to a group medical expense plan
(B) Premium contributions paid by the employer to a group disability plan
(C) Premium contributions paid by the individual to a group medical expense plan
(D) Premium contributions paid by the individual to a group disability plan
(C) Premium contributions paid by the individual to a group medical expense plan
An individual purchased group credit accident and health insurance to cover a car loan. Following an accent, the individual was disabled for 8 months. Which of the following benefits were paid under the policy?
(A) Monthly income benefits to the insured
(B) An amount equal to 8 months of the loan payment to the insured’s creditor
(C) An amount equal to 10 months of the sloan payment to the insured’s creditor
(D) Monthly income benefits to the insured and an amount equal to 8 months of the loan payment to the insured’s creditor
(B) An amount equal to 8 months of the loan payment to the insured’s creditor
Dan is a participant in his company’s group health plan. One of the plan’s provisions specifies that, in the event he is eligible for benefits under another policy, his group plan will serve as the primary plan. What is this provision called?
(A) Excess coverage provision
(B) Coordination of benefits provision
(C) Other insurance with this insurer provision
(D) Double indemnity provision
(B) Coordination of benefits provision
A vacation cruise line that wants group health coverage for its passengers would purchase what kind of insurance?
(A) Franchise health insurance
(B) Wholesale health insurance
(C) Blanket health insurance
(D) Credit health insurance
(C) Blanket health insurance
The purpose of COBRA requirements concerns:
(A) coordination of health benefits
(B) continuation of health insurance
(C) Medicare supplement coverage
(D) nondiscrimination in group health plans
(B) continuation of health insurance
Sally is covered by her employer’s noncontributory group disability income plan, the premium for which is $50 a month. If she were to become disabled and receive $1,000 a month, how much of each benefit payment would be taxable income to her?
(A) $0
(B) $50
(C) $950
(D) $1,000
(D) $1,000
Which of the following statements regarding group disability income plans is NOT correct?
(A) Benefits are specified in terms of a percentage of the participant’s earnings
(B) Benefits paid under the group plan are supplemental to workers’ compensation benefits
(C) Employees covered under both a short-term and long-term plan collect benefits from each simultaneously
(D) A minimum length of service may be required before an employee is eligible to participate in the plan
(C) Employees covered under both a short-term and long-term plan collect benefits from each simultaneously
Which of the following statements about COBRA is CORRECT?
(A) The premium for continued group medical coverage may be up to 102% of the premium that would otherwise be charged.
(B) The employer must pay the cost of the continued group coverage.
(C) The schedule of benefits during the continuation period may be different than those provided under the group plan.
(D) COBRA permits an employee to convert a group certificate to an individual policy.
(A) The premium for continued group medical coverage may be up to 102% of the premium that would otherwise be charged.
