Massachusetts Health & Accident Insurance Exam CORRECT
QUESTIONS & ANSWERS(GRADED A)
Hazard - ANSWER Situation that increases chance of loss
Annuity - ANSWER Policy issued by an insurance company to promise you an income
that can last you a lifetime
Insurer - ANSWER An insurance company
Insured - ANSWER A person or business covered by an insurance policy
Health Insurance - ANSWER Broad field of insurance plans that provide protection
against financial consequences of illness, accidents, injury, and disability
- Paid on a year-to-year basis
, - Subject to periodic premium increases
- Benefits not fixed
Medical Expense Insurance - ANSWER Pays benefits for nonsurgical doctors' fees
commonly rendered in a hospital; sometimes pays for home and officecalls
Disability Income Insurance - ANSWER Provide a replacement income when wages are
lost due to disability; based on education, training, experience
- income creates limits
- monthly income payments
- highest premium = 14 day waiting period w/ 10 year benefit
- ceiling amount
Accidental Death and Dismemberment Insurance (AD&D) - ANSWER Provides the
insured with a lump-sum benefit amount in the event of accidental death or
dismemberment under accidental circumstances
, Interim Coverages - ANSWER 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.
Key Person Disability Insurance - ANSWER - 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 - ANSWER - 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 - ANSWER The amount you pay for your health insurance every month
QUESTIONS & ANSWERS(GRADED A)
Hazard - ANSWER Situation that increases chance of loss
Annuity - ANSWER Policy issued by an insurance company to promise you an income
that can last you a lifetime
Insurer - ANSWER An insurance company
Insured - ANSWER A person or business covered by an insurance policy
Health Insurance - ANSWER Broad field of insurance plans that provide protection
against financial consequences of illness, accidents, injury, and disability
- Paid on a year-to-year basis
, - Subject to periodic premium increases
- Benefits not fixed
Medical Expense Insurance - ANSWER Pays benefits for nonsurgical doctors' fees
commonly rendered in a hospital; sometimes pays for home and officecalls
Disability Income Insurance - ANSWER Provide a replacement income when wages are
lost due to disability; based on education, training, experience
- income creates limits
- monthly income payments
- highest premium = 14 day waiting period w/ 10 year benefit
- ceiling amount
Accidental Death and Dismemberment Insurance (AD&D) - ANSWER Provides the
insured with a lump-sum benefit amount in the event of accidental death or
dismemberment under accidental circumstances
, Interim Coverages - ANSWER 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.
Key Person Disability Insurance - ANSWER - 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 - ANSWER - 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 - ANSWER The amount you pay for your health insurance every month
