[34762] Government Plans & Health Plans Exam

Jeff works in a factory and his employer pays 75% of his disability income policy. How much of Jeff’s income benefits are taxable?

Disability Income payments are always received as a tax-free reimbursement for lost wages.
Since Jeff contributes 25% of the premium payment, he will be responsible for paying taxes on 75% of the income received.
Jeff's employer is responsible for paying the income tax on his disability income.
Disability Income beneficiaries share the income tax liabilities 50% / 50%.

How many days does one have to make the initialpremium payment for COBRA following the electionof COBRA by the qualified beneficiary:

10-Days
30-Days
45-Days
60-Days

How many uniform policy provisions are required in health insurance policies?

6
9
11
12

Which of the following best describes the purpose of Workers’ Compensation insurance?

Provide retirement income
Provides employees with guaranteed bi-annual Cost of Living salary increases.
Cover a worker against sickness or injury on the job.
Provide employee compensation for day care expenses

What is the cost to beneficiaries for Medicare Part B benefits?

Part-B beneficiaries pay a monthly premium and a co-pay equal to 20%
Beneficiaries who are fully covered by OASDI pay no monthly premium and a 10% co-pay for all covered services.
Beneficiaries are only responsible for paying 25% of all covered claims.
Part-B beneficiaries are only responsible for a 5% co-pay.

How long is the Disability Income incontestable period?

5-Years
4-Years
3-Years
2-Years

A waiver of premium for a long term care insurance policy kicks in after the insured has been disabled for at least,

10-Days
30-Days
60-Days
90-Days

All of the following statements about Hospice are correct EXCEPT,

Hospice benefits are accommodations for people who require full-time custodial assistance.
Hospice benefits are unlimited
Hospice benefits are limited to 6-Months
Hospice benefits are hospitalization benefits for people who qualify for OASDI Disability Income benefits however, they haven't yet qualified for medicare.

Which of the following can make an employe ineligible for COBRA coverage?

Changing job titles
Gross misconduct
Reduction in employees pay
Quitting

How many optional policy provisions pertain to a health insurance contract.

9
11
12
14

Once COBRA coverage is elected, who is responsible for payment of premiums?

The employer for 180-days
Workers Compensation benefits.
The employee and employer split the premium 50% / 50%
The employee / beneficiary who is converting the coverage.

Someone who qualifies for COBRA because they are disabled pays a premium that can increase after 18-months to ___ of the plan’s total cost of coverage.

50%
100%
125%
150%

COBRA law does not apply to plans sponsored by which ONE of the following choices?

Federal Government
Doctors Offices
Hospitals
Corporate entities

What is the maximum number of years of employment one needs to complete in order to be eligible to participate in a Cafeteria Plan?

1-Year
2-Years
3-Years
4-Years

COBRA coverage begins on the date the coverage would otherwise have been lost by reason of a qualifying event and coverage ENDS when…

The former employee terminates coverage.
The last day of maximum coverage is reached.
Premiums are not paid on a timely basis.
Employer ceases to maintain any group health plan.

Which of the following best describes the cost associated with receiving Medicare Part-A Nursing Home benefits?

Medicare Part-A does not cover Nursing Home Care.
The Part-A initial deductible covers the first 20-Days of Nursing Home Care. The beneficiary is responsible for a daily co-pay from the 21 to 10-Day.
Medicare Nursing Home benefits are only available to people who can't perform two activities of daily living.
Medicare Beneficiaries receive 60-Days of nursing home care with their initial deductible. From day 61 – 90 the beneficiary will be responsible for a daily co-pay equal to 25% of the initial deductible.

Cafeteria Plans utilize employee surveys to help determine the demographics of the company. Which of the following is one of the two surveys used?

Age survey
Objective survey
Income survey
Education survey

Which of the following is NOT reimbursable under a business overhead disability policy

Salaries of the owners
Office rent
Office Utilities
Accountant salary / fees

The question of “Constructive Receipt” is the root of the now-famous phrase,

Over-budgeted
Rules are Rules
Overtaxed
Use it or lose it.

All the following people qualify for Medicare benefits EXCEPT,

Jeff who has been collecting OASDI Disability Income for 24-months. disabled persons.
Mary who turns 65 years old in two months.
Ken who was recently diagnosed with End-Stage Renal Disease.
People under 65 with disabled children

All the following are activities of daily living EXCEPT,

Getting dressed
Going grocery shopping
Taking care of personal hygiene
Toileting

When COBRA is elected, the premium increase can-not exceed which of the following percentages?

102%
103%
104%
105%

Employers with ___ or more employees in the prior year will have COBRA cover their group health plan.

10 Employees
20 Employees
30 Employees
40 Employees

Once entitled to COBRA benefits, you have ____ days to accept coverage or lose all rights to benefits

10-Days
30-Days
40-Days
60-Days

There are five sections of IRS code that deal specifically with Cafeteria Plans. Which of the following is ONE of the five?

Section 901
Section 79
Section 126
Section 211

Someone who qualifies for COBRA is referred to as as a,

Benefit Beneficiary
Qualified Beneficiary
Beneficiary recipients.
Continuation coverage beneficiaries

Carol has an insurance policy. Her insurer did not pay a claim she submitted despite being covered. Who should Carol contact for help with this matter?

The agent who sold her the policy.
The hospital who billed the insurer
The insurer's Consumer Services Department
The Department of Financial Services Division of Consumer Services.

Which of the following best identifies the benefits associated with Original Medicare?

Original Medicare is an all inclusive healthcare plan sponsored by the Federal Government.
Original Medicare is that name given to Medicare Part-C Advantage plans which cover all necessary medical services.
Original Medicare refers to Part-A hospitalization and Part-B Physician services.
Original Medicare has evolved to a Medicare supplemental plan called Medigap.

When filing a claim for health insurance, ALWAYS,

Call the agent
Call the company
Notify the doctor.
Make copies of everything you send to the insurer.

When does a person first become eligible to enroll in Medicare?

On their 65th Birthday
After they've been receiving OASDI benefits for at least 24-months.
3-Months before their 65th birthday.
Once a person has paid 40-quarters of FICA Payroll Taxes they become eligible for Medicare.

All the following are true EXCEPT,

Eligible Medicare Beneficiaries who have paid 40-quarters of FICA payroll taxes don't pay a Part-A premium.
Medigap only works with Original Medicare
Medigap only works with Medicare Advantage
Medicare Part-C can not be combined with any other Medicare component.

Which of the following best describes the regulations regarding income taxes on personal disability income policies?

Premiums are deductible and income is tax free
Premiums are not tax deductible, but income is received 100% tax free
Premiums are not deductible and the income received is taxable income.
Disability Income premiums and income benefit is tax deductible.

How long is the Grace Period Provision for a Long-Term Care insurance policy?

14–Days
21-Days
30-Days
31-Days

Which of the following is said to be the average stay in a Long-Term Care facility?

465 Days
4-Years
5-Years
6-Years

Which of the following is NOT a level of care provided by long-term care insurance policies?

Skilled Nursing
Intermediate Care
Assisted Living Care
Custodial Care

Which of the following statements about Medicare Part-B is correct?

Medicare Part-B is mandatory and all seniors age 65 must participate.
Participation in Medicare Part-B is a voluntary healthcare program.
Medicare Part-B is a component of Original Medicare. Premiums are automatically taken out of the beneficiary's Social Security check.
Medicare Part-B has a 90-Day benefit period.

A Social Security rider on a disability income plan is designed to,

Pay an additional income if you become eligible for Social Security.
Pay an income benefit in the event of a disability that does not qualify for OASDI benefits.
Pays a benefit if you are rejected twice for Social Security benefits.
Pays a benefit if Social Security approves your claim

What were Cafeteria Plans called in the beginning:

CAFTAs
ZEROs
ZEBRAs
Section 125

Which of the following alphabetical groupings under Disability Income plans is equivalent to a CLASS ONE occupation?

AAAA
AA
A
B

What percent of premium paid less benefits received does the cash-back option on a disability plan usually return the insured at age 65?

150%
100%
50%
25%

Government Plans & Health Plans 34762 Exam

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