Health and Accident Insurance Exam
- Which of these circumstances is a Business Disability Buy-Sell policy designed to
help in the sale of a business?
Business owner becoming disabled
-A Business Disability Buy-Sell policy is designed to assist in the sale of a business
when one of the owners becomes disabled. - Accidental Death coverage is provided to commercial airline passengers in which of
the following types of policies?
Blanket Accident policy
A Blanket Accident policy provides Accidental Death coverage to airplane passengers. - The Health Insurance Portability and Accountability Act (HIPAA) gives privacy
protection for
The Health Insurance Portability and Accountability Act (HIPAA) provides privacy
protection for health information. - J has an Accidental Death and Dismemberment policy with a principal sum of
$50,000. While trimming the hedges, J cuts off one of his fingers. What is the
MAXIMUM J will receive from his policy?
The maximum sum payable would be the capital sum, or $25,000. - Which of these types of coverage is best described as a short term medical policy?
A short term medical policy is best described as interim coverage. - How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
-A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies
before the insured’s death.
- Under which of the following circumstances will the benefits under COBRA
continuation coverage end?
All group health plans are terminated by the employer
-One of the disqualifying events that can result in the termination of continuing coverage
under COBRA is when the employer terminates all group health plans. - The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and
their families) whose employment has been terminated the right to
Continue group health benefits - When an employee is required to pay a portion of the premium for an
employer/employee group health plan, the employee is covered under which of the
following plans?
Contributory
-Group plans where employees pay a portion of the premiums are called contributory
plans. - On an Accidental Death and Dismemberment (AD&D) insurance policy, who is
qualified to change the beneficiary designation?
Policy owner
-The policy owner has the right to change the beneficiary designation. However,
consent may needed by the current beneficiary if designated as irrevocable. - Which contract permits the remaining partners to buy-out the interest of a disabled
business partner?