WAB Insurance

Question 1

Under COBRA the employer can charge

Answer 1

102% of premium

Question 2

Partial disability rider is

Answer 2

Usually free

Question 3

To exercise a guaranteed insurance option, you must

Answer 3

Show proof of higher earnings

Question 4

Sale price of an insurance policy owned by an employer is

Answer 4

The greater of the cash value or premium paid by the employer

Question 5

Group health insurance allows for conversion to

Answer 5

An individual policy but DISABILITY is not convertible

Question 6

If employers pay disability premiums, benefits are

Answer 6

Taxable to the employee

Question 7

Split dollar insurance is an

Answer 7

Employee benefit (not key person)

Question 8

BOE policy premiums

Answer 8

Are not deductible (benefits tax free)

Question 9

Insurance protects people from

Answer 9

Risk

Question 10

Partially self funded plans

Answer 10

Insurance pays claims in excess of X amount

Question 11

Risk retention

Answer 11

High deductible and reduces premiums

Question 12

A.M Best ratings

Answer 12

A++ highest rating

Question 13

Waiver of premium clause

Answer 13

Causes extra premiums to add feature to policy

Question 14

Uninsured motorist is

Answer 14

Liability protection

Question 15

Unemployment comp is

Answer 15

Taxable over $2400

Question 16

HRA

Answer 16

Solely employer funded and reimbursed for med expenses up to max amount per coverage period

Question 17

Medicare LTC is ______ but Medicaid is _____

Answer 17

1) 100 days
2) NOT

Question 18

Companies can deduct interest expense on loans taken against employee life insurance policies up to_____

Answer 18

$50k per policy

Question 19

Group Disability Insurance is

Answer 19

Cheaper for employees and more liberal underwriting

Question 20

VEBA benefits don’t include

Answer 20

Deferred compensation plans or retirement benefits (pensions, annuities, etc.)

Question 21

FSA’s

Answer 21

• no income, FICA, FUTA taxes
• no LTC
• no HSA
• use it or lose it for dependent care by 12/31

Question 22

Annuities held by entities are

Answer 22

Taxed on income in the year received or in the year accrued

Question 23

For someone looking to take a loan from their policy, _______ is the best dividend option

Answer 23

5th yr

Question 24

Someone who struggles with saving should get a

Answer 24

Whole life policy (universal/flexible is no no)

Question 25

Owner of an S-corp

Answer 25

TAX FREE BENEFITS

Question 26

For LTC premiums

Answer 26

The older you are, the more you can deduct

Question 27

HMO policies must

Answer 27

Go through PCP gatekeeper, pay monthly fee, and only in network is covered

Question 28

If a spouse ceases to be a resident of the same household, they are still covered under the PAP until the earliest of:

Answer 28

• end of 90days following the move
• date of the spouses new policy
• the end of the OG policy period

Question 29

Apply for Medicare….

Answer 29

3mo before your 65th bday

Question 30

Medicare premiums can be higher based on

Answer 30

AGI 2 yes before enrolling

Question 31

Medicare part A will cover all but _________ for the first 1-____ days of inpatient care

Answer 31

• flat deductible
• 1-60 days

(61-90days you pay $400 co insurance, 91+ $800 co insurance)