Chapter 12 – Health and
Accident Insurance Exam
- Jill has a group health plan with an employer that covers employees in more than one
state. Which of the following aspects is NOT affected by the state regulatory jurisdiction
established for this plan?
Continuation of coverage under COBRA - Group accident and health insurance may be offered by an insurer when the
sponsoring group
Provides an employer-employee relationship - Which of the following statements BEST describes a double indemnity provision in
travel accident insurance?
Benefits are doubled under certain circumstances stated in the policy - What action can an insurer take to discourage malingering and false disability
claims?
Limit the amount of benefits an insured can receive from two disability policies with the
same insurer - What type of employee welfare plans are not subject to ERISA regulations?
Church Plans - Which of the following statements BEST describes disability buy-sell insurance
policies?
Policy proceeds are typically received income tax-free - Darrell has a group long-term disability income policy paid by his employer. Which of
these statements is true?
The specified benefit amount is a percentage of his wages - For employees covered in multiple states under a group health plan, jurisdiction rules
cannot alter
COBRA Laws - How many employees must an employer have for the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA) to apply?
20 or more - A certificate of coverage for a group health policy is best described as
Proof of coverage for the employee - When disability buy-sell insurance benefits exceed a partner’s cost basis, which of
the following is correct?
The full amount is non-taxable to the partner - Which of the following is NOT a function of accident and health insurance?
Pays a death benefit as a result of natural causes - A comprehensive group policy also covers expenses related to vision care. Which of
the following is not typically covered under a vision plan?
Cataract Surgery