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20 Cards in this Set
- Front
- Back
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According to the coordination of benefits provision, if both parents have coverage for a child from their employers policies, which policy will pay first? |
The order of payment will be determined by the birthday rule: the coverage of the parent whose birthday is earlier in the year will be considered primary |
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What is the purpose of managed care health insurance plans? |
To control health insurance claims expenses |
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In group medical and dental expense insurance, what percentage of the premium paid by the employer is deductible as a business expense? |
100% |
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What are the four types of workers compensation benefits? |
Medical, income, rehabilitation and death benefits |
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What type of health insurance covers partners or corporate officers of a closely held business? |
Disability buy-sale |
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What is subrogation in health insurance? |
The legal process that gives the insurer the right to seek recovery from a third-party that was responsible for the loss after the insurer has paid the insured for the loss |
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What are the five basic characteristics of managed care plans? |
Controlled access to providers, comprehensive case management, preventive care, risk sharing, and high-quality care |
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How are individually – owned disability income benefits text once received by the insured? |
Disability benefits are not taxed; they are received income tax free |
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Under what employer- provided playing are the benefits taxable to an employee in proportion to the amount of premium paid by the employer? |
Disability income |
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In health insurance, Wynnewood and excess plan pay benefits? |
After the primary plan has paid its full promised benefit, the excess plan will pay the balance |
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If the insureds share in the cost of health insurance premiums with the employer, this would be known as what type of group health plan? |
Contributory |
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When a business receives benefits from its key person disability insurance, how are those benefits taxed? |
The key person disability insurance benefits are received tax free. |
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What type of insurance covers an employee who is hurt on the job? |
Workers compensation |
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How long do short-term disability group plans pay benefits? |
For a period of less than two years |
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How are benefits received by the business from a key person disability insurance? |
Income tax free |
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What type of health insurance is sold to small business owners to reimburse them for the overhead expenses? |
BOE – business overhead expense insurance |
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What is a birthday rule in a coordination of benefits provision? |
The coverage of the parent whose birthday is earlier in the year is considered primary |
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What types of disabilities will be covered by occupational coverage? |
Disabilities that result from accidents or sicknesses that occur on or off the job |
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Under a fully contributory health plan, how are benefits received by the employee? |
Income tax free |
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What is the tax advantage of the employer paying premiums for its employees for disability income insurance? |
Premiums are deductible as a business expense |
