MASSACHUSETTS HEALTH & ACCIDENT
INSURANCE EXAM STUDY GUIDE WITH
QUESTIONS AND ANSWERS | GRADED
A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Interim Coverages Term insurance for a period of months or less by special agreement of the company; it
permits a permanent policy to become effective at a selected future date.
Interim the intervening time
Subrogation the right for an insurer to pursue a third party that caused an insurance loss to the insured
Business Continuation Plans continue the operation of the business in the event of a disabling sickness to a business
owner or key employee
Employee Benefit Plans - help employee in event of disabling sickness or injury
- rare to not include provision of health insurance/benefits
- contributes to morale and productivity of employee
- provides needed benefits (helps hold down demands for wage increases)
- gives employer tax deductions
- enhances employer image
Business Overhead Expense Insurance - sold individually
- designed to reimburse business for overhead expenses in the event a business owner
becomes disabled (day to day operations)
- does not include compensation for disabled owner
- premiums are tax-deductible as insurance expense
- benefits are taxable income
Disability Buy-Sell Plan/Disability Buy-Outs An agreement between business co-owners that provides that shares owned by any one
of them who becomes disabled shall be sold to and purchased by the other co-owners
or by the business using funds from disability income insurance.
- legal binding agreement funded with disability income policy
- pay benefits in periodic payments
- buy-out plan contains provision allowing for a lump-sum payment of the benefit
- benefits tax-free
- premiums not tax deductible
- lengthy elimination periods (2+ yrs)
, Key Person Disability Insurance - pays monthly benefit to a business for additional help or outside services when an
essential person is disabled
- key persons economic value to a business is determined by potential loss of business
income that could occur (hiring price)
- business = owner and premium payer of policy
- benefits tax-free
- premiums not tax deductible
- policies reserved for "hard to replace" employees or key sales members
Group Health Insurance - between insurance company and group (employer)
- health insurance through group master contracts
- employer may pay premium or require contribution from each member
- master policy
- insureds receive certificates of insurance and an outline that describes benefits
- more extensive benefits
- higher benefit maximums
- benefits predetermined by employer
- group health coverage = natural group
- minimum number of persons covered established by state law
- impose eligibility requirements before participating
- less costly/less expenses
Premium The amount you pay for your health insurance every month
Probationary Period period of time where a new employee is ineligible for group health insurance coverage
(start a new job)
Enrollment Period limited period of time where all members may sign up for a group loan
Coordination of Benefits Provision - Designed to prevent duplication of group insurance benefits. Limits benefits from
multiple group health insurance policies in a particular case to % of the expenses
covered and designates the order in which the multiple carriers are to pay benefits.
(married couples)
Provider designation of any healthcare provider
Overutilization when health benefits are too high
INSURANCE EXAM STUDY GUIDE WITH
QUESTIONS AND ANSWERS | GRADED
A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Interim Coverages Term insurance for a period of months or less by special agreement of the company; it
permits a permanent policy to become effective at a selected future date.
Interim the intervening time
Subrogation the right for an insurer to pursue a third party that caused an insurance loss to the insured
Business Continuation Plans continue the operation of the business in the event of a disabling sickness to a business
owner or key employee
Employee Benefit Plans - help employee in event of disabling sickness or injury
- rare to not include provision of health insurance/benefits
- contributes to morale and productivity of employee
- provides needed benefits (helps hold down demands for wage increases)
- gives employer tax deductions
- enhances employer image
Business Overhead Expense Insurance - sold individually
- designed to reimburse business for overhead expenses in the event a business owner
becomes disabled (day to day operations)
- does not include compensation for disabled owner
- premiums are tax-deductible as insurance expense
- benefits are taxable income
Disability Buy-Sell Plan/Disability Buy-Outs An agreement between business co-owners that provides that shares owned by any one
of them who becomes disabled shall be sold to and purchased by the other co-owners
or by the business using funds from disability income insurance.
- legal binding agreement funded with disability income policy
- pay benefits in periodic payments
- buy-out plan contains provision allowing for a lump-sum payment of the benefit
- benefits tax-free
- premiums not tax deductible
- lengthy elimination periods (2+ yrs)
, Key Person Disability Insurance - pays monthly benefit to a business for additional help or outside services when an
essential person is disabled
- key persons economic value to a business is determined by potential loss of business
income that could occur (hiring price)
- business = owner and premium payer of policy
- benefits tax-free
- premiums not tax deductible
- policies reserved for "hard to replace" employees or key sales members
Group Health Insurance - between insurance company and group (employer)
- health insurance through group master contracts
- employer may pay premium or require contribution from each member
- master policy
- insureds receive certificates of insurance and an outline that describes benefits
- more extensive benefits
- higher benefit maximums
- benefits predetermined by employer
- group health coverage = natural group
- minimum number of persons covered established by state law
- impose eligibility requirements before participating
- less costly/less expenses
Premium The amount you pay for your health insurance every month
Probationary Period period of time where a new employee is ineligible for group health insurance coverage
(start a new job)
Enrollment Period limited period of time where all members may sign up for a group loan
Coordination of Benefits Provision - Designed to prevent duplication of group insurance benefits. Limits benefits from
multiple group health insurance policies in a particular case to % of the expenses
covered and designates the order in which the multiple carriers are to pay benefits.
(married couples)
Provider designation of any healthcare provider
Overutilization when health benefits are too high
