( 1 ) - Intro to Health Insurance - Health and Accident UPDATED ACTUAL
Questions and CORRECT Answers
1. G is an accountant who has ten employees and is concerned about how the
business would survive financially if G became disabled. The type of policy
which BEST addresses this concern is?: Business Overhead Expense.
(A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the business
owner is disabled.)
2. Which of the following statements is correct regarding an employer/employ-
ee group health plan?: The employer receives a master policy and the employees receive certificates.
( Under an employer/employee group health plan the employer receives a master policy and the employees receive
certificates.)
3. The federal income tax treatment of employer-provided group Medical Ex-
pense insurance can be accurately described as?: Employee's premiums paid by the employer
is tax-deductible to the employer as a business expenditure.
4. The Coordination of Benefits provision?: Prevents an insured covered by two health plans from
making a profit on a covered loss.
5. Many small business owners worry how their business would survive finan-
cially if the owner becomes disabled. The policy which BEST addresses this
concern is?: Business Overhead Expense.
(A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the
businessowner is disabled.)
6. 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?: $25,000.
(The maximum sum payable would be the capital sum, or $25,000.)
7. Accidental Death coverage is provided to commercial airline passengers in
which of the following types of policies?: A Blanket Accident policy.
(provides Accidental Death coverage to airplane passengers.)
8. K is the insured and P is the sole beneficiary on an Accidental Death and
Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident
where K dies before P. Under the Common Disaster provision, which of these
statements is true?: Proceeds will be paid to P's estate.
( Because the sole beneficiary outlived the insured, the proceeds will be payable to the estate of the deceased
Questions and CORRECT Answers
1. G is an accountant who has ten employees and is concerned about how the
business would survive financially if G became disabled. The type of policy
which BEST addresses this concern is?: Business Overhead Expense.
(A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the business
owner is disabled.)
2. Which of the following statements is correct regarding an employer/employ-
ee group health plan?: The employer receives a master policy and the employees receive certificates.
( Under an employer/employee group health plan the employer receives a master policy and the employees receive
certificates.)
3. The federal income tax treatment of employer-provided group Medical Ex-
pense insurance can be accurately described as?: Employee's premiums paid by the employer
is tax-deductible to the employer as a business expenditure.
4. The Coordination of Benefits provision?: Prevents an insured covered by two health plans from
making a profit on a covered loss.
5. Many small business owners worry how their business would survive finan-
cially if the owner becomes disabled. The policy which BEST addresses this
concern is?: Business Overhead Expense.
(A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the
businessowner is disabled.)
6. 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?: $25,000.
(The maximum sum payable would be the capital sum, or $25,000.)
7. Accidental Death coverage is provided to commercial airline passengers in
which of the following types of policies?: A Blanket Accident policy.
(provides Accidental Death coverage to airplane passengers.)
8. K is the insured and P is the sole beneficiary on an Accidental Death and
Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident
where K dies before P. Under the Common Disaster provision, which of these
statements is true?: Proceeds will be paid to P's estate.
( Because the sole beneficiary outlived the insured, the proceeds will be payable to the estate of the deceased
