Texas Life and Health – Flashcards
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Under which condition would be an employees group medical benefits be exempt from income taxes?
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An employee's group medical benefits are generally exempt from taxation as income.
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under a key Person disability income policy, premium payments
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Are made by the business and are not tax-deductible.
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Which of the following is INCORRECT concerning taxation of disability income benefits?
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If paid by the individual, the premiums are tax deductible.
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Which of the following is correct regarding Business Overhead Expenses insurance?
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Premiums are tax deductible.
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Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?
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Employee benefits are tax deductible the year in which they were received.
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For group medical and dental expenses insurance, what percentage of premium paid by the employer is deductible as a business expense?
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100%
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What type of insurance is sold to small business owners that must meet overhead expenses such as rent or utilities following a disability?
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Business overhead expense
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Which of the following is NOT true regarding Workers Compensation?
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Benefits are offered by the insurer.
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Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner?
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Disability Buy-Sell
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Group disability income insurance premiums paid by the employer are
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Deductible by the employer as an ordinary business expense.
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Which of the following premium modes would result in the highest annual cost fora Life Insurance Policy?
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Monnthly
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An insured is covered under 2 group health plans-under his own and his spouse's. He had suffered a loss of $2000. After the insured paid the total $500 in deductible and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
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$500
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A husband and wife are insured under group health insurance plans at their places of employment. Because their employers pay for their plans, each is covered as a dependent under their spouse's coverage. if the husband is hospitalized, how are the medical expenses likely to be paid?
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The benefits will be coordinated.
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S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct?
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100%
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Which of the following statements is correct concerning taxation of long-term care insurance?
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Excessive benefits may be taxable.
