WorksheetsInsurance Quiz 4
Total questions: 20
Worksheet time: 10mins
A Business Overhead Expense policy:
covers any loss of income by the business owner
covers business expenses such as rent and utilities
covers employee wages only
reimburses the company for any reduction in sales due to the owner's disability
Select the appropriate response: The benefits under a Disability Buy-Out policy are:
normally paid in installments
taxable to the beneficiary
payable to the company or another shareholder
normally paid after a short elimination period
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
Indemnity
Subrogation
Legal action
Consideration
On an Accidental Death and Dismemberment (AD&D) insurance policy, who is qualified to change the beneficiary designation?
Payer
Primary beneficiary
Policyowner
Insurer
Which of these types of coverage is best described as a short term medical policy?
interim coverage
provisional coverage
transitional coverage
conversion coverage
Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?
Disability income policy premiums are NOT tax-deductible
Disability income policy premiums are tax-deductible
Major medical policy benefits are normally not taxed
Disability income policy benefits are normally not taxed
Which of the following is the reimbursement of benefits for the treatment of a beneficiary’s injuries caused by a third party?
Indemnity
Subrogation
Legal action
Consideration
Select the appropriate response: The difference between group insurance and blanket health policies is:
Blanket health policies do not issue certificates
Group health policies do not issue certificates
Group health plans may be issued to an airline to cover its passengers
Blanket health policies are sometimes called wholesale plans
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to:
R's estate
Q's estate
P and Q's estate
P only
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at any time. What type of beneficiary is his son?
Tertiary
Irrevocable
Revocable
Contingent
Which of the following would be a likely candidate for disability income insurance on a key employee?
Company executive
Hourly employee
Common shareholder
Secretary to the CEO
Select the appropriate response: The Coordination of Benefits provision:
allows an insured covered by two health plans to make a profit on a covered loss
prevents an insured covered by two health plans from making a profit on a covered loss
allows an insurer to defer paying a claim for a work-related injury until Workers' Compensation Benefits have expired
prevents an insured to change insurers during a claim for a covered loss
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to:
continue group health benefits
take out an individual health policy
transfer their coverage to another insurer
convert to disability coverage
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?
Company becoming insolvent
Death of the business owner
Business owner becoming disabled
Key employee becoming disabled
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the:
Grace Period
Waiting Period
Postponement Period
Elimination Period
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?
$1,000,000
$500,000
$250,000
$0
G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is:
Business Overhead Expense
Disability Income
Key Employee Life
Contributory
P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA benefits, which of the following statements is TRUE?
She DOES need to provide evidence of insurability
She does NOT need to provide evidence of insurability
She will have up to 6 months to convert to an individual policy
She will be paying exactly the same premium for the individual plan as she did the group plan
How does group insurance differ from individual insurance? Select the appropriate response.
Evidence of insurability is required
Premiums are higher
Premiums are lower
Pre-existing conditions not covered
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?
Limited
Special risk
Reimbursement
Blanket
