Chapter 4 - Health and Accident Insurance 48 Examinable Questions and 100% correct Answers

Document Content and Description Below

Chapter 4 - Health and Accident Insurance 48 Examinable Questions and 100% correct Answers If an employee contributes 50% toward the disability plan premium provided by an employer, what would be ... considered the taxable income of a $1,000 monthly disability benefit? - $100 - $250 - $500 - $1,000 Answers: $500 Which of the following would evidence ownership in a participating health insurance contract? - Stock ownership - Irrevocable beneficiary status - Policy ownership - Collateral assignment Answers: Policy ownership Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE? - He's not eligible for Medicare - His group health plan and Medicare pay 50/50 - Medicare is the secondary payer - Medicare is the primary payer Answers: Medicare is the secondary payer Which of the following would be considered a possible applicant and contract policyholder for group health benefits? - Human resource department - Employer - Insured employee - Insurance company Answers: Employer What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do? - In the event of the employment termination, group health insurance can be kept if the employee pays the premiums - Receive a tax credit to help offset the cost of health insurance - Remain on their current coverage for 30 months- In the event of employment termination, group health insurance can be kept if the employer pays the premiums Answers: In the event of the employment termination, group health insurance can be kept if the employee pays the premiums Key Person Disability Insurance pays benefits to the - Hospital - Employee - Employer - Employee's creditors Answers: Employer When are group disability benefits considered to be tax-free to the insured? - When the recipient pays the premiums - When the employer pays the premiums - When both the employer and recipients pay the premiums - When benefits paid are equal to or lower than the recipient's salary Answers: When the recipient pays the premiums Justin receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? - Partially taxable income - Non-taxable income - Taxable income - Conditionally taxable income Answers: Taxable income In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at - Employee has no tax liability - 40% of the benefit - 60% of the benefit - 100% of the benefit Answers: 60% of the benefit Continued coverage under COBRA would be provided to all of the following EXCEPT: - Former dependent of employee no longer dependent status - Terminated employee - Divorced spouse of employee - A covered employee is terminated for gross misconduct Answers: A covered employee is terminated for gross misconductSusan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. This change is called a(n) - Crossover - Conversion - Exchange - Extension of benefits Answers: Conversion Under the subrogation clause, legal action can be taken by the insurer against the - Responsible third party - Beneficiary - Policyowner - State Answers: Responsible third party Which of the following is INELIGIBLE to participate in a Section 125 Plan? - Key Employee in a C-Corp - Highly compensated employee in an S-Corp - A C-Corp Owner with a greater than 2% share - An S-Corp Owner with a greater than 2% share Answers: An S-Corp Owner with a greater than 2% share According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied? - There have been too many claims in the previous year - The size of the group has increased more than 10% - Participation or contribution rules have been violated - Participation or contribution rules been changed Answers: Participation or contribution rules have been violated [Show More]

Last updated: 1 year ago

Preview 1 out of 9 pages