[SVL] Insurance 22

Employer paid group medical and dental health insurance benefits are tax free and the premiums are
A. deductible to the employee
B. deductible to the employer
C. deductible to both the employee and employer
D. not deductible

Self-employed persons are allowed to deduct what percentage of the amount they pay for health insurance?
A. 25%
B. 75%
C. 50%
D. 100%

Which of the following was created to help employees and self-employed individuals pay for their medical care expenses on a tax advantaged basis?

A. Flexible spending arrangement
B. Medical savings account
C. Health reimbursement account
D. Health savings account

Which of the following is a cafeteria plan benefit and is funded with employee money by means of a salary reduction?

A. Individual retirement account
B. Flexible spending arrangement
C. Health reimbursement account
D. Medical savings account

Wanda's employer pays the entire premium for her group disability coverage. If Wanda became disabled, how much of her benefits from this coverage would be subject to tax?
A. 0%
B. 100%
C. It depends on her tax bracket
D. 50%

If Wanda paid her entire premium for her group disability coverage, how much of her benefits from this coverage would be subject to tax?
A. 50%
B. 100%
C. 0%
D. It depends on her tax bracket

The XYZ Coffee Company may deduct its premiums from taxes but the benefits are taxable. The type of business disability plan that the company must have is a
A. buy-sell
B. business overhead expense
C. medical expense
D. key person

The premiums paid by a company for group
medical for its employees are

A. tax deductible to the employees and the company
B. tax deductible by the company and considered taxable income to the employees
C. not tax deductible to either the company or the business
D. tax deductible by the company and not considered taxable income to the employees

Benefits paid by personally owned accident,
health, disability, or long-term care policies
generally are

A. received partially tax free by the taxpayer
B. received income-tax free
C. taxed at the end of the year
D. taxed upon receipt by the taxpayer

Qualified group long-term care coverage premiums that are paid for by the employer are
A. deductible by both the company and the employee
B. not deductible by either the company or the employee
C. deductible by the company but not the employee
D. deductible by the employee but not the company

Personally owned disability income insurance premiums are
A. not deductible to the insured, and the benefits are taxed
B. deductible to the insured, but the benefits are taxed
C. deductible to the insured, and the benefits are received tax free
D. not deductible to the insured, but the benefits are received tax free

A health plan that offers relatively low premiums but requires that the insured pay a high deductible is a
A. high deductible health plan
B. health savings account
C. flexible spending account
D. health reimbursement account

All of the following statements about a health savings account (HSA) are correct EXCEPT
A. contributions to an HSA are not tax deductible
B. inside the HSA earnings are tax-deferred
C. individuals are eligible for an HSA if they cannot be claimed as a dependent on another person's tax return
D. HSA distributions are tax-free if used to pay for qualified medical expenses

10. The premiums are deductible and the benefits are taxable for which of the following business disability plans?
A. Key person
B. Business overhead expense
C. None of these
D. Buy-sell