WebCE Practice Exams|378 Questions and Answers 100% Verified!

Which medical plan covers doctor visits while the insured is in the hospital and physical therapy treatments following release from the hospital? limited medical policy basic hospital expense policy comprehensive major medical insurance supplementary major medical insurance - ANSWER-comprehensive major medical insurance A comprehensive major medical plan covers hospital expenses and doctor and surgeon fees. A basic hospital expense policy covers the cost of hospitalization, but not physician's fees. Upon the lapse or surrender of a permanent life insurance policy, the cash value is available to the policyowner in the form of: distribution options nonforfeiture options surrender options settlement options - ANSWER-nonforfeiture options Nonforfeiture options give policyowners several ways to receive a policy's cash value upon lapse or surrender of the policy. Medicare Part A provides reasonable and medically necessary hospital care for how long? 21 days 60 days 30 days Inpatient hospital care is not covered. - ANSWER-60 days For a Medicare Part A beneficiary, a benefit period begins on the day of admittance to the hospital. That benefit period ends 60 days after release from the hospital. When received in a lump sum, how are life insurance death benefits commonly taxed to the beneficiary? Death benefits from a life insurance policy are generally taxable to the beneficiary. Fifty percent of death benefits from a life insurance are taxable to the beneficiary. Death benefits from a life insurance policy are generally not taxable to the beneficiary. Death benefits from a life insurance policy are received tax deferred. - ANSWER-Death benefits from a life insurance policy are generally not taxable to the beneficiary. When received in a lump sum, the death benefits from a life insurance policy are generally not taxable to the beneficiary. For tax purposes, the term "self-employed person" includes all of the following, EXCEPT: a sole proprietor a C corporation's officers a partner an S corporation owner who owns more than 2 percent of the outstanding shares - ANSWER-a C corporation's officers A pregnant woman marries and is covered by her spouse's employer's group health plan. Will the plan cover the child? Yes, after the woman applies for coverage on behalf of the child. Yes, from the moment of birth. No, because the pregnancy was a pre-existing condition. No, because dependents must be covered under a separate policy. - ANSWER-Yes, from the moment of birth. HMOs must provide their subscribers (enrollees) with evidence of coverage, which must include all the following EXCEPT the HMO's contact information a list of all approved medical care providers in the HMO's network a description of the coverage provided by the plan an explanation of the capitation arrangement the HMO has with providers in its network - ANSWER-a list of all approved medical care providers in the HMO's network On June 1, Sandra submitted proof of her uncle's death and her right as beneficiary to receive the proceeds of his life insurance policy. A life insurance policy settlement must take place by: July 1 June 15 August 1 December 31 - ANSWER-August 1 A policy settlement must take place no later than two months after the date of receipt of proof of the insured's death and the right of the claimant to the policy proceeds. Which of the following types of health insurance covers the cost of medical care and medical services? disability income insurance medical expense insurance accidental death and dismemberment (AD&D) insurance Medicare supplement insurance - ANSWER-medical expense insurance Medicare supplement policies offer private insurance coverage that supports and enhances the care and services Medicare covers. Congress amended the Medicaid spend-down rules to eliminate: spousal abuse spousal participation spousal impoverishment spousal abandonment - ANSWER-spousal impoverishment At one time, requiring Medicaid applicants to reduce their assets often resulted in the impoverishment of the spouse. Today, spouses are protected from this unintended consequence. Which of the following best describes how group life insurance premiums are treated for tax purposes? The employer can deduct its premiums as a business expense, but employees cannot deduct their premium contributions. The employer can deduct its premiums as a business expense, and employees can deduct their premium contributions on their tax returns. Employees can deduct their premium contributions on their tax returns, but the employer cannot deduct its premiums. Neither employees nor their employers can deduct group life premiums on their tax returns. - ANSWER-The employer can deduct its premiums as a business expense, but employees cannot deduct their premium contributions. While employer contributions are deductible as a business expense, employee contributions are not tax deductible, though they can help reduce the tax impact of employer contributions. What kind of policy only covers cancer, stroke, heart attack, and Parkinson's disease? medical surgical expense policy catastrophic medical