Massachusetts Health & Accident Insurance Exam Study Guide with Complete Solutions
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Course
Massachusetts Life Insurance
Institution
Massachusetts Life Insurance
Massachusetts Health & Accident
Insurance Exam Study Guide with
Complete Solutions
Hazard - Answer️️ -Situation that increases chance of loss
Annuity - Answer️️ -Policy issued by an insurance company to promise
you an income that can last you a lifetime
Insurer - Answer️️ -An insu...
Massachusetts Health & Accident
Insurance Exam Study Guide with
Complete Solutions
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.
Interim - Answer✔️✔️-the intervening time
Subrogation - Answer✔️✔️-the right for an insurer to pursue a third party
that caused an insurance loss to the insured
Business Continuation Plans - Answer✔️✔️-continue the operation of the
business in the event of a disabling sickness to a business owner or key
employee
Employee Benefit Plans - Answer✔️✔️-- help employee in event of disabling
sickness or injury
- rare to not include provision of health insurance/benefits
- contributes to morale and productivity of employee
- provides needed benefits (helps hold down demands for wage increases)
- gives employer tax deductions
- enhances employer image
Business Overhead Expense Insurance - Answer✔️✔️-- sold individually
- designed to reimburse business for overhead expenses in the event a
business owner becomes disabled (day to day operations)
- does not include compensation for disabled owner
- premiums are tax-deductible as insurance expense
- benefits are taxable income
Disability Buy-Sell Plan/Disability Buy-Outs - Answer✔️✔️-An agreement
between business co-owners that provides that shares owned by any one of
them who becomes disabled shall be sold to and purchased by the other co-
owners or by the business using funds from disability income insurance.
- legal binding agreement funded with disability income policy
- buy-out plan contains provision allowing for a lump-sum payment of the
benefit
- benefits tax-free
- premiums not tax deductible
- lengthy elimination periods (2+ yrs)
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
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