How many employees must an employer have for a terminated employee to be eligible for COBRA?
20
30
40
50
20
What is issued to each employee of an employer health plan?
Provision
Receipt
Policy
Certificate
Certificate
When are group disability benefits considered to be tax-free to the insured?
When the recipient pays the premiums
When the employer pays the premiums
When both the employer and recipient pay the premiums
When benefits paid are equal to or lower than the r
When the recipient pays the premiums
Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?
Presumptive disability provision
Absolute accidental provision
Accidental death benefit provision
Accidental bodily injury provision
Accidental bodily injury provision
According to HIPAA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual
is eligible for coverage upon hire
must wait 360 days to be eligible for coverage
must co
is eligible for coverage upon hire
Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the
employee's benefits still owed can be claimed
employee cannot be excluded from the new employer's healt
employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan
Which of the following is INELIGIBLE to participate in a Section 125 Plan?
Key Employee in a C-Corp
Highly Compensated Employee in an S-Corp
A C-Corp Owner with a greater than 2% share
An S-Corp Owner with a greater than 2% share
An S-Corp Owner with a greater than 2% share
Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA?
It would be considered taxable income to the employee
The employee would not be allowed to an HSA
The employer would pay payroll tax and FICA on the co
It would be considered taxable income to the employee
Under which criteria may a group health plan exclude participation?
Member's claims history
Member's current age
Member's pre-existing condition
Member's part-time employment status
Member's part-time employment status
Which of the following is typically NOT eligible for coverage in a group health policy?
Full-time employee
Temporary employee
Business owner
Partner in a partnership
Temporary employee
A master contract and certificate of coverage can be found in which type of policy?
Long-term
Medicaid
Group
Medicare
Group
Under the subrogation clause, legal action can be taken by the insurer against the
responsible third party
beneficiary
policyowner
State
Responsible Third Party
Susan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. This change is called a(n)
crossover
conversion
exchange
extension of benefits
Conversion
Which of the following is NOT a decision that can be made by an individual with a Health Savings Account (HSA)?
The amount of his/her employer's contribution
The amount of his/her contribution
The type of investments used in the HSA
The medical expenses t
The amount of his/her employer's contribution
...
be the same and the premium cannot exceed 102%
Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled?
Disability overhead policy
Business continuation policy
Disability buy-sell policy
Business overhead expense policy
Business overhead expense policy
A person covered with an individual health plan
is issued a policy
is issued a certificate of medical costs
does not contract directly with the insurance company
is not subject to medical underwriting
Is Issued A Policy
Health insurance involves two perils, accident and ____.
death
sickness
disability
liability
Sickness
Which of the following does Coordination of Benefits allow?
Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid
Allows both a group health plan and individual health plan to coordinate their benefit paymen
Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid
If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit?
$100
$250
$500
$1,000
$500
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do?
In the event of employment termination, group health insurance can be kept if the employee pays the premiums
Receive a tax credit to help offset the cost
In the event of employment termination, group health insurance can be kept if the employee pays the premiums