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Health Insurance Exam| Questions and Verified ANSWERs|100% Correct Which of the following statements is correct regarding an employer/employee group health plan?1) Each employee receives a duplicate policy from the insurer 2) The employer receives a master policy and the employees receive certificates 3) Both the employer and employee are policyowners 4) The employer receives the master policy and the employees receive a summary of benefits
ANSWER: The employer receives a master policy and the
employees receive certificates
Which statement is true regarding a minor beneficiary?1) Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21 2) Normally, a guardian is required to be appointed in the Beneficiary clause of the contract 3) The minor must pay the debts of the insured's estate before receiving any of the proceeds 4) The minor is entitled to receive the death proceeds immediately
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ANSWER: Normally, a guardian is required to be appointed in
the Beneficiary clause of the contract
Which contract permits the remaining partners to buy-out the interest of a disabled business partner?1) Group Disability 2) Business Continuation 3) Disability Buy-Sell 4) Key Person Disability
ANSWER: Disability Buy-Sell
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?1) 36 2) 18 3) 15 4) 6
ANSWER: 36
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The Health Insurance Portability and Accountability Act
(HIPAA) gives privacy protection for:
insolvency, health information, financial information, overinsurance
ANSWER: health information
B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary?
1) $100,000
2) $200,000
3) $300,000
4) $400,000
ANSWER: $300,000
A Business Disability Buyout plan policy is designed:
1) As an incurred expense plan 2) With a very short Elimination period 3) To pay benefits to the Corporation or other shareholders
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4) To pay benefits to the insured's spouse
ANSWER: To pay benefits to the Corporation or other
shareholders
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
ANSWER: $0
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 laws, 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