Employee Benefits: Group Life And Health Insurance

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Question 1
Free
Multiple Choice

Which of the following statements about group insurance is true?

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A

Individual contracts are issued to each person covered under a group insurance plan.

B

The cost of group insurance is usually higher on a per-person basis than the cost of individual insurance.

C

The actual experience of a large group is a factor in determining the premium that is charged.

D

Individual evidence of insurability is usually required.

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Question 2
Free
Multiple Choice

Which of the following statements about group insurance underwriting principles is (are) true?
I)If a plan is contributory, 100 percent of the eligible employees must be covered.
II)Ideally, there should be a flow of older people into the group and younger people out of the group.

Choose correct answer/s
A

I only

B

II only

C

both I and II

D

neither I nor II

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Question 3
Free
Multiple Choice

Which of the following statements about group insurance underwriting principles is true?

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A

Employees should be required to remit premiums directly to the insurance company.

B

The average age of the group should ideally increase over time.

C

A group should be formed for the specific purpose of obtaining insurance.

D

A flow of people through the group is desirable.

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Question 4
Free
Multiple Choice

Reasons for having a minimum participation requirement before a group is eligible for insurance include which of the following?
I)To lower the expense rate per unit of insurance
II)To minimize the possibility of insuring a group which consists largely of unhealthy individuals

Choose correct answer/s
A

I only

B

II only

C

both I and II

D

neither I nor II

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Question 5
Free
Multiple Choice

Which of the following statements about the eligibility requirements for group insurance is true?

Choose correct answer/s
A

Most plans cover both full-time and part-time employees.

B

An employee must be actively at work on the day the employee's group insurance becomes effective.

C

An employee who signs-up for insurance during an eligibility period must furnish evidence of insurability.

D

One purpose of a probationary period is to determine whether the employee is healthy enough to be covered under the group health insurance plan.

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Question 6
Multiple Choice

The period of time during which an employee can sign up for group insurance coverage without furnishing evidence of insurability is called a(n)

Choose correct answer/s
A
probationary period.
B
noninsurability window.
C
waiting period.
D
eligibility period.
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Question 7
Multiple Choice

Which of the following statements about group term life insurance is true?

Choose correct answer/s
A
It usually is written in the form of 5-year level term insurance.
B
An employee who leaves the group is usually not permitted to convert to individual coverage.
C
Experience rating is used in group term life insurance plans.
D
It represents only a small percentage of the group life insurance in force.
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Question 8
Multiple Choice

High deductible group health insurance plans have all of the following characteristics EXCEPT

Choose correct answer/s
A
health savings accounts or health reimbursement arrangements.
B
high dollar deductibles.
C
low coverage limits.
D
coinsurance.
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Question 9
Multiple Choice

Which of the following statements about group accidental death and dismemberment (AD&D) insurance is (are) true?
I)The principal sum is paid if the employee dies in an accident.
II)A percentage of the principal sum is paid for certain types of dismemberments.

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 10
Multiple Choice

New employees at Jarvis Company cannot participate in the group term life insurance plan until they have worked at the company for three months. This initial period before a new employee can participate is called a(n)

Choose correct answer/s
A
probationary period.
B
elimination period.
C
open enrollment period.
D
eligibility period.
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Question 11
Multiple Choice

Which of the following statements about Blue Cross Plans is (are) true?
I)They provide coverage for physicians' and surgeons' fees.
II)They usually provide benefits for hospital charges.

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 12
Multiple Choice

What is the purpose of stop-loss insurance that is used with self-insured group medical expense plans?

Choose correct answer/s
A
to require employees to buy insurance for losses in excess of some specified amount
B
to have a commercial insurer pay claims that exceed a specified limit
C
to obtain administrative services from a commercial insurer
D
to exempt self-insured plans from state insurance laws that require mandated benefits
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Question 13
Multiple Choice

All of the following are reasons why employers self-insure medical expense plans EXCEPT

Choose correct answer/s
A
to reduce certain costs, such as premium taxes and commissions.
B
to provide mandated state benefits.
C
to retain funds until needed to pay claims.
D
to eliminate the need to comply with separate state laws.
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Question 14
Multiple Choice

A key feature of group medical expense plans is the employee being required to pay a percentage of covered expenses in excess of the deductible. This feature is

Choose correct answer/s
A
other insurance.
B
coinsurance.
C
pro-rated insurance.
D
reinsurance.
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Question 15
Multiple Choice

Which of the following statements about recent developments in group medical coverage is (are) true?
I)After increasing for many years, the premiums for group medical expense coverage have finally started to decline.
II)A growing number of employers are offering plans with higher deductibles for employees.

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 16
Multiple Choice

A deductible under which expenses are accumulated on an annual basis, and once a specified total is reached, the deductible is satisfied for the year is called a

Choose correct answer/s
A
calendar-year deductible.
B
prospective deductible.
C
straight deductible.
D
waiting period.
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Question 17
Multiple Choice

Which of the following is (are) characteristics of HMO managed care plans?
I)Unlimited choice of physicians and hospitals
II)Emphasis on controlling the cost of covered services

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 18
Multiple Choice

Which of the following statements about HMO managed care plans is (are) true?
I)There is an emphasis on controlling costs.
II)They provide narrow, limited, medical services to members.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 19
Multiple Choice

An HMO physician who determines if medical care from a specialist is necessary is called a(n)

Choose correct answer/s
A
capitator.
B
internist.
C
network facilitator.
D
gatekeeper.
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Question 20
Multiple Choice

An HMO that contracts with two or more independent group practices to provide medical services to covered members is called a(n)

Choose correct answer/s
A
group model HMO.
B
network model HMO.
C
staff model HMO.
D
individual practice association HMO.
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