Insurance Flashcards
(42 cards)
Companies that can partially self insure w/ stop-loss coverage
under 100 employee companies
elements of insurable risk
fortuitous and accidental loss
Transfer of risk
high severity, low frequency of loss
avoidance of risk
high severity, high frequency of loss
reduction of risk
low severity, high frequency of loss
retention of risk
low severity, low frequency of loss
Tort
wrongful act for which civil action can be brought against someone for
attractive nuisance
high degree of care imposed on occupier of land for certain conditions
capital retention calc
yearly income needs/inflation + yearly income needs
absolute liability
extra hazardous conditions
ex: workers’ comp.
tax deductible ER paid premiums/costs
Bus. owner’s insurance
workers’ comp
Fed. unemp. tax
director/officer liab. insurance
COBRA
MUST elect for companies with 20+ EEs
18 months: voluntary/involuntary changes
36 months: eligibility for Medicare, death, divorce, loss of dep. status
Formula method for insurance coverage for losses
rep. cost x coinsurance= insurance needed
insurance/insurance needed x loss -ded.
Is Alzheimer’s covered by medicare
no
dividend options
reduction of premium
accumulate with interest
purchase paid up additions
one year term/5th dividend
nonforfeiture options
reduced paid up
paid up term
settlement options
interest
installments
lifetime income
cash value in VUL policy
in separate account
Cash value in UL policy
in general account
annuity contract deductiblity
only when paid to bonus to EE
taxability of surrenders of deferred annuity
tax free return of capital
FSA medical expense spend timing (grace period)
2.5 extra months (Jan to March) for MEDICAL expenses ONLY
FSA taxability of ded. cont. to plan
withholding taxes
NO FICA taxes
Benefits needed at retirement w/ fully funded DB plan
medical insurance and life insurance
