Accident and Health Insurance
Wisconsin: Exam
An employer pays the accident and health insurance premiums for its employees. The premiums paid by
the employer are
Deductible to the business.
Taxable to the employee.
Tax-deferred to the business.
Reimbursed as a tax credit. - Deductible to the business.
Medical expense insurance typically EXCLUDES coverage for:
Prosthetic devices such as artificial limbs
Cosmetic surgery
Injuries resulting from auto accidents
Treatment for terminal illnesses - Cosmetic surgery
A group health insurer's acquisition costs are usually highest:
In the first plan year
In the second plan year
After the first renewal
After the second renewal - In the first plan year
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.
Routine eye exam.
Corrective vision glasses.
Corrective contact lenses. - Cataract Surgery.
A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer - Transfer
A certificate of coverage for a group health policy is best described as
A contract between the employer and employee
A contract between the employer and insurer
Proof of coverage for the employee
Proof of coverage for the employer - Proof of coverage for the employee
A group-owned insurance company that is formed to assume and spread the liability risks of its members
is known as a
Risk retention group
Treaty insurer
Risk assumption group
Captive insurer - Risk retention group
A contract is considered void in all of the following situations EXCEPT
When one party is a minor
When consideration is unequal
,When consideration is incomplete
When agreement cannot be reached between parties - When consideration is unequal
A disability income insurance policy was recently issued with a rating. What does this mean?
Policyowner will be charged an additional premium.
Policy will have specific illnesses excluded from coverage.
Policyowner will be charged a reduced premium.
Policy will have a longer waiting period. - Policyowner will be charged an additional premium.
A disabled business owner who has payroll and business expenses paid for has what kind of insurance
policy?
Key person.
Franchise disability.
Business overhead expense.
Disability income. - Business overhead expense.
A group health insurance policy is a contract between an
Employee and insurance company
Employee and employer
Employer and insurance company
Employer and producer - Employer and insurance company
A health maintenance organization (HMO) usually provides all of the following inpatient hospital services
EXCEPT:
Preadmission certification
, Concurrent utilization review
Discharge planning
Payment for convenience items - Payment for convenience items
A hold-harmless clause is an example of risk
Avoidance
Retention
Transfer
Sharing - Transfer
A mandatory second surgical opinion provision typically would encourage all of the following EXCEPT:
Fewer elective surgeries
Higher total health plan costs for an employer
Independent review of recommendations for surgery
Better management of the health care plan - Higher total health plan costs for an employer
A policyowner suffers an injury that renders him incapable of performing one or more important job
duties. Any decrease in income resulting from this injury would make him eligible for benefits under
which provision?
Partial disability.
Nondisabling injury.
Presumptive disability.
Flat amount disability. - Partial disability.
A producer or agent who negligently replaces health insurance for a client creates potential liability for:
Breach of good faith
Wisconsin: Exam
An employer pays the accident and health insurance premiums for its employees. The premiums paid by
the employer are
Deductible to the business.
Taxable to the employee.
Tax-deferred to the business.
Reimbursed as a tax credit. - Deductible to the business.
Medical expense insurance typically EXCLUDES coverage for:
Prosthetic devices such as artificial limbs
Cosmetic surgery
Injuries resulting from auto accidents
Treatment for terminal illnesses - Cosmetic surgery
A group health insurer's acquisition costs are usually highest:
In the first plan year
In the second plan year
After the first renewal
After the second renewal - In the first plan year
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.
Routine eye exam.
Corrective vision glasses.
Corrective contact lenses. - Cataract Surgery.
A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer - Transfer
A certificate of coverage for a group health policy is best described as
A contract between the employer and employee
A contract between the employer and insurer
Proof of coverage for the employee
Proof of coverage for the employer - Proof of coverage for the employee
A group-owned insurance company that is formed to assume and spread the liability risks of its members
is known as a
Risk retention group
Treaty insurer
Risk assumption group
Captive insurer - Risk retention group
A contract is considered void in all of the following situations EXCEPT
When one party is a minor
When consideration is unequal
,When consideration is incomplete
When agreement cannot be reached between parties - When consideration is unequal
A disability income insurance policy was recently issued with a rating. What does this mean?
Policyowner will be charged an additional premium.
Policy will have specific illnesses excluded from coverage.
Policyowner will be charged a reduced premium.
Policy will have a longer waiting period. - Policyowner will be charged an additional premium.
A disabled business owner who has payroll and business expenses paid for has what kind of insurance
policy?
Key person.
Franchise disability.
Business overhead expense.
Disability income. - Business overhead expense.
A group health insurance policy is a contract between an
Employee and insurance company
Employee and employer
Employer and insurance company
Employer and producer - Employer and insurance company
A health maintenance organization (HMO) usually provides all of the following inpatient hospital services
EXCEPT:
Preadmission certification
, Concurrent utilization review
Discharge planning
Payment for convenience items - Payment for convenience items
A hold-harmless clause is an example of risk
Avoidance
Retention
Transfer
Sharing - Transfer
A mandatory second surgical opinion provision typically would encourage all of the following EXCEPT:
Fewer elective surgeries
Higher total health plan costs for an employer
Independent review of recommendations for surgery
Better management of the health care plan - Higher total health plan costs for an employer
A policyowner suffers an injury that renders him incapable of performing one or more important job
duties. Any decrease in income resulting from this injury would make him eligible for benefits under
which provision?
Partial disability.
Nondisabling injury.
Presumptive disability.
Flat amount disability. - Partial disability.
A producer or agent who negligently replaces health insurance for a client creates potential liability for:
Breach of good faith
