Question

In: Accounting

Given a $250 annual deductible, a $5,000 lid on the co-insurance, 80/20 co-insurance, and a $250,000...

Given a $250 annual deductible, a $5,000 lid on the co-insurance, 80/20 co-insurance, and a $250,000 policy limit, how much of a $27,500 medical bill will be paid by the insured?

Question 11 options:

1)

$ 250

2)

$5,000

3)

$5,450

4)

$5,250

5)

$5,700

Question 12 (0.5 points)

Disability income policies usually have ____ that is a time delay from the date of the issuance of the policy until benefit privileges are activated.

Question 12 options:

1)

waiting periods

2)

probationary periods

3)

elimination periods

4)

internal limit periods

5)

outer limits

Question 13 (0.5 points)

If your employment is terminated, COBRA provides for:

Question 13 options:

1)

cancellation of all group insurance benefits.

2)

continuation of group insurance benefits until you are reemployed.

3)

permanent continuation of group health insurance.

4)

temporary continuation of group insurance benefits; you pay premiums.

5)

temporary continuation of group insurance benefits; employer pays premiums.

Question 14 (0.5 points)

Auto insurance is needed primarily because of:

Question 14 options:

1)

potential damage to auto.

2)

potential liability claims.

3)

lender's requirements.

4)

state law.

5)

federal requirements.

Question 15 (0.5 points)

All of the following except a ____ are highly recommended for a long-term disability income policy.

Question 15 options:

1)

guaranteed renewable clause

2)

cost-of-living adjustment

3)

long duration of benefit

4)

short waiting period

5)

waiver of premium

Solutions

Expert Solution

Question 11.

Answer :

Given a $250 annual deductible, a $5,000 lid on the co-insurance, 80/20 co-insurance, and a $250,000 policy limit, a $27,500 medical bill

ACtual MEdical bill is $27500

80/20 means insured person have to pay 20% of out of pocket expenses balance 80% should be paid by insurance copmany but that 20% sholud not exceed maximum limit,Here maximum limit is $5000

1st $250 shold be deducted from $27500 .i.e $27500-$250=$27250

so 20% calculted on $27250=$27250*.2=$5450

$5450 is over the maximum limit of $5000,so insured pay only $5000

Total medical bill to be paid by insured is $5000+$250=$5250 only

Answer is 4)$5250

Question 12 :

Disability income policies usually have probationary period that is a time delay from the date of the issuance of the policy until benefit privileges are activated.Beacuse disability insurance policies takes time for coverage of policy come in to effective.this time period is called probationary period

Answe is 2) Probationary period

Question 13 :

As per COBRA ,Employer needs to provide an option to employees who have left job or terminated job to continue group insurance when the employee pays the required premium as per group ploicy

Answer is 4) Temporary continuation of group insurance benefits when you pay premiums

Question 14:

Answer Auto incurance requires primary for potential liability claims.

Answer 2)potential liability claims


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