Which Contract Permits The Remaining Partners

Question: Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?

Answer: Business owner becoming disabled

A Business Disability Buy-Sell policy is designed to assist in the sale of a business when one of the owners becomes disabled.

Question: Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?

Answer: Blanket Accident policy

A Blanket Accident policy provides Accidental Death coverage to airplane passengers.

Question: The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for

Answer: The Health Insurance Portability and Accountability Act (HIPAA) provides privacy protection for health information.

Question: 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?

Answer: The maximum sum payable would be the capital sum, or $25,000.

Question: Which of these types of coverage is best described as a short term medical policy?

Answer: A short term medical policy is best described as interim coverage.

Question: How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

Answer: If the primary beneficiary dies before the insured

A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured’s death.

Question: Under which of the following circumstances will the benefits under COBRA continuation coverage end?

Answer: All group health plans are terminated by the employer

One of the disqualifying events that can result in the termination of continuing coverage under COBRA is when the employer terminates all group health plans.

Question: The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to

Answer: continue group health benefits

Question: When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans?

Answer: Contributory

Group plans where employees pay a portion of the premiums are called contributory plans.

Question: On an Accidental Death and Dismemberment (AD&D) insurance policy, who is qualified to change the beneficiary designation?

Answer: Policyowner

The policyowner has the right to change the beneficiary designation. However, consent may needed by the current beneficiary if designated as irrevocable.