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24 Cards in this Set
- Front
- Back
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An insurance policy labeled _________ cannot be cancelled for any reason other than nonpayment of premium. A Noncancellable B Free access C Guaranteed renewable D Guaranteed issue |
C Guaranteed renewable |
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One of the changes to take effect following passage of the PPACA was to allow children to remain covered under a parent’s policy to age:A21B29C18D26 |
D26 |
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What is a High Deductible Health Plan? A It is a health plan offered by large companies who are trying to minimize the growing cost of providing employee health insurance B It is a tax-favored savings account established by an employer for each covered employee C It is a tax-favored Health Reimbursement Account established by an employer for its highly-compensated executives D It is a health plan which requires the insured to absorb a relatively high deductible in exchange for a greatly reduced out-of pocket-premium |
D It is a health plan which requires the insured to absorb a relatively high deductible in exchange for a greatly reduced out-of pocket-premium |
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Health Savings Accounts and Health Reimbursement Arrangements are both types of what form of health insurance? A Employer-sponsored group health plans B Flexible spending arrangements C Individual and Group Medical IRAs D Consumer-driven health plans |
D Consumer-driven health plans |
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A person may not fund an HSA unless they also do which of these? A Purchase basic health insurance through an Exchange B Designate up to $2500 of pre-tax income to be withheld for payment of medical expenses C Purchase a High Deductible Health Plan D Fully fund their 401(k), 403(b), or Roth IRA |
C Purchase a High Deductible Health Plan |
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When an individual pays the full cost of disability income insurance, a disabled employee’s benefit will be ____________________. A Taxable in full, regardless of the employee's wage B Taxable in part, up to 60% of the employee’s pretax wage C Nontaxable up to 60% of the employee’s pretax wage D Nontaxable in full, regardless of the employee’s wage |
D Nontaxable in full, regardless of the employee’s wage |
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Premiums paid by employees for group health insurance are only deductible to the extent that ______________________. A They exceed 7.5% of adjusted gross income B They are not offset by contributions to a FSA C They exceed the national average cost of health insurance D They exceed what the employer pays for the coverage |
A They exceed 7.5% of adjusted gross income |
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When the employer pays some or all of the cost of medical insurance for its employees, the annual amount of each employee’s claims is _______________________. A Not taxable to the employee B Taxable to the employer C Deductible to the employer D Taxable to the insurance company |
A Not taxable to the employee |
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When a disability buy-sell is funded by the partnership, what is the tax liability? A The premiums are not tax deductible and the value of the benefit is taxable as income B The premiums are tax deductible and the value of the benefit is taxable as income C The premiums are tax deductible and the value of the benefit is not taxable D The premiums are not deductible and the value of the benefit is not taxable as income |
D The premiums are not deductible and the value of the benefit is not taxable as income |
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What is the maximum annual contribution to an FSA, which is allowed by law?A20%B10% of AGIC$2,550 DThere is no limit |
C$2,550 |
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Michelle's corporation chose a high-deductible health plan (HDHP) because it: A Needed one in order to offer its 1,000 employees an FSA B Was concerned about covering catastrophic costs, not the cost of preventative medical treatments C Needed an HDHP to coordinate with the HSA they intended to offer its 700 full time employees D Needed an HDHP to coordinate with the MSA it intended to establish for its 700 full time employees |
C Needed an HDHP to coordinate with the HSA they intended to offer its 700 full time employees |
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For which of the following may any funds remaining at year-end not be rolled over to the next year? A Health Savings Account B Flexible Spending Account C Medical Savings Account D Individual Retirement Account |
B Flexible Spending Account |
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Under which of the following business-related plans are benefits taxable as income to the owner? A Both Business Overhead Expense and Disability Buy-Sell Agreement B Neither Business Overhead Expense nor Disability Buy-Sell Agreement C Business Overhead Expense D Disability Buy-Sell Agreement |
C Business Overhead Expense |
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The cost-sharing provisions of TRICARE Standard include: A A $12 co-pay for office visits and 25% co-pay for procedures B A $12 co-pay for office visits and $11 daily co-pay for hospital stays C An $11 co-pay for office visits and $12 daily co-pay for hospital stays D An $11 daily co-pay for hospital stays and 25% co-pay for procedures |
A A $12 co-pay for office visits and 25% co-pay for procedures |
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After Robert signed up for Medicare, he withdrew $2,000 from his HSA. He used $600 for his Medicare Supplement premium, $200 for out-of-pocket medical expenses, and the remaining $1,200 on a trip to celebrate his retirement. Later on, when he paid his taxes for the year, he discovered that: A Nothing was taxable B Everything was taxable C $1,200 was subject to income tax D $1,200 was subject to income tax plus a 20% penalty |
C $1,200 was subject to income tax |
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The benefits received from which of the following personal policies are received tax-free? A Medical expense insurance and LTC insurance only B Medical expense insurance, LTC insurance, and disability income insurance C Medical expense insurance only D Medical expense insurance and disability income insurance only |
B Medical expense insurance, LTC insurance, and disability income insurance |
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Karen, age 50, withdraws $1,000 from her Health Savings Account (HSA) for a purpose other than a qualified medical expense. As a result of this action: A The $1,000 is taxed as ordinary income, with no penalty tax applied B The $1,000 is taxed as ordinary income, with an additional $150 penalty tax applied C The $1,000 is taxed as ordinary income, with an additional $100 penalty tax applied D The $1,000 is taxed as ordinary income, with an additional $200 penalty tax applied |
D The $1,000 is taxed as ordinary income, with an additional $200 penalty tax applied |
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Group Accidental Death and Dismemberment premiums are _______ by the company paying the premiums as a business expense.ATax-DeferredBTax-FreeCTaxableDDeductible |
DDeductible |
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What differences exist between the treatment of sole proprietors and partners when it comes to the taxation of medical expense insurance? A Sole proprietors can deduct their premiums, but partners cannot B There is no difference C Sole proprietors can deduct 100% of their premiums with no restrictions, while partners have a partial deduction D Sole proprietors can deduct their premiums, but partners are subject to amounts in excess of 10% of the partner's AGI |
B There is no difference |
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Ashley wanted to establish her company benefit plan so that it could cover her individual health insurance premiums and out-of-pocket expenses without group insurance or loss of unused benefits. After some research, she established a:AHRAsBFSAsCHSAsDMSAs |
AHRAs |
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Which of the following individuals is not eligible to establish a Health Savings Account? A Magdalena, who has access to a consumer driven health plan through her firm B Mary, a self-employed individual who purchase a high deductible policy through her state exchange C Anne, who is covered through a traditional HMO D Martha, who also has access to an FSA through her employer |
C Anne, who is covered through a traditional HMO |
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Which statement is true regarding taxation of health insurance? A The benefits received from a personally owned Disability Income Policy are subject to federal income taxes B The benefits received from a group Disability Income Policy paid entirely by the employer are fully taxable as income to the employee C The benefits received from a Major Medical Insurance Policy are usually subject to federal income tax D The benefits received from a group Accidental Death and Dismemberment Policy are taxable to the recipient |
B The benefits received from a group Disability Income Policy paid entirely by the employer are fully taxable as income to the employee |
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All of the following are ways consumers can insure themselves with 'minimum essential coverage' without having to pay a penalty under the Affordable Care Act, except: A Purchase insurance offered by an employer B Be self-insured C Enroll in a government program or purchase coverage through a state exchange D Purchase insurance directly from an insurer in the individual market |
B Be self-insured |
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All of the following are primary plans, EXCEPT: A TRICARE Standard B Medicare C TRICARE for Life D TRICARE Prime |
C TRICARE for Life |
