Unit 25 Flashcards
All of the following are methods of keeping premium costs to a minimum in a health policy EXCEPT:
(A) modifying benefit amounts
(B) increasing the deductible
(C) waiving the right to receive benefit payments when due
(D) extending the elimination period
(C) waiving the right to receive benefit payments when due
Fred owns a small hardware store and is covered under a business overhead expense policy. If he becomes disabled, he can expect all of the following expenses to be covered EXCEPT:
(A) his employees’ salaries
(B) his salary
(C) utility bills
(D) property and liability insurance premiums
(B) his salary
Which of the following characteristics is associated with disability buy-out plans?
(A) A short elimination period
(B) his salary
(C) utility bills
(D) property and liability insurance premiums
(B) his salary
What is the income tax consequence if Marie’s employer pays for her group disability income coverage?
(A) Marie’s must pay taxes on the premium payments
(B) Marie can deduct the premium payments
(C) The employer receives the disability income benefits tax free
(D) The employer can deduct the premium payments
(D) The employer can deduct the premium payments
With regard to health insurance policies, which of the following statements is CORRECT?
(A) A major medical plan with a $100 deductible is less expensive than one with a $500 deductible
(B) More Americans are covered by an individual medical expense policy than a group policy
(C) The appropriate benefit payable under a disability income policy should equal the insured’s monthly gross income policy should equal the insured’s monthly gross income
(D) A disability policy with a 6-month elimination period is less expensive than one with a 60-day elimination period, all other factors being equal.
(D) A disability policy with a 6-month elimination period is less expensive than one with a 60-day elimination period, all other factors being equal.
