1. Health and Accident Insurance review

Health insurance

Refers to the broad field of insurance plans that provide protection against the financial consequences of illness, accidents, injury, and disability.

Medical expense insurance

Provides financial protection against the cost of medical care by reimbursing the insured for these costs.

Disability income insurance

Provides a replacement income when wages are lost due to a disability.

Accidental Death and Dismemberment Insurance (AD&D)

Provides the insured with a lump-sum benefit amount in the event of accidental death or dismemberment.

Interim Coverage

Short-term policies that can be purchased when in between jobs or waiting for a new policy to start.

Health insurance premium

Calculated based on interest, expense, types of benefits, and morbidity within a given age group.

Subrogation

The right for an insurer to pursue a third party that caused an insurance loss to recover the amount of the claim paid.

Business Continuation Plans

Plans to continue the operation of a business in the event of a disabling sickness or injury to a business owner or key employee.

Employee Benefit Plans

Plans that help employees in the event of a disabling sickness or injury.

Business Overhead Expense Insurance

Designed to reimburse a business for overhead expenses when a business owner becomes disabled.

Disability Buy-Sell Plan

A plan to assist in the sale of a business in the event of the disability of a business owner.

Key Person Disability Insurance

Coverage that pays a monthly benefit to a business to cover expenses when an essential person is disabled.

Coordination of Benefits (COB)

A provision found only in group health plans to avoid duplication of benefit payments when covered under more than one plan.

Group health insurance policy

A contract between the insurance company and the group, usually provided through employer or association.

Probationary period

The time during which a new employee is ineligible for group health insurance coverage.

Enrollment period

A limited period of time during which all members may sign up for a group plan.

Creditable coverage

Prior group health insurance that reduces the maximum preexisting condition exclusion period.

HIPAA

The Health Insurance Portability and Accountability Act, providing health insurance coverage portability and limiting exclusion for preexisting conditions.

COBRA

A federal law guaranteeing continuation of group coverage for terminated employees under certain conditions.

Accidental Death and Dismemberment Insurance (AD&D) - Principal Sum

The amount payable as a death benefit under an AD&D policy.

Capital Sum

Amount payable under an AD&D policy for the accidental loss of sight or dismemberment, expressed as a percentage of the principal sum.

Cafeteria Plans (Section 125 plan)

Benefit arrangements allowing employees to choose from a menu of benefits, converting taxable cash benefits into non-taxable ones.

Health Savings Accounts (HSAs)

A tax-favored vehicle for accumulating funds to cover medical expenses for individuals with a qualified high-deductible health plan.

Tax Treatment of Group Health Plans

Employers can take tax deductions for premium contributions to a group health plan; individual participants generally cannot deduct their contributions.