Legal Expense Insurance

### What is the primary purpose of legal expense insurance? - [x] To provide prepaid or subsidized legal services to a group on a schedule of benefits. - [ ] To compensate individuals for lost wages due to legal proceedings. - [ ] To cover all possible legal expenses without limit. - [ ] To insure property against damage during legal disputes. > **Explanation:** The primary purpose of legal expense insurance is to provide prepaid or subsidized legal services for a group based on a scheduled list of benefits. ### Which legal service is commonly covered by legal expense insurance? - [ ] Business start-up consultations - [x] Adoptions - [ ] Intellectual property disputes - [ ] Mergers and acquisitions > **Explanation:** Commonly covered legal services in legal expense insurance include adoptions, where the plan can cover legal consultations and paperwork needed. ### After the scheduled benefits in a legal expense insurance plan are exhausted, how are subsequent legal fees usually determined? - [ ] They are covered by a separate insurance policy. - [ ] They are discounted by 50%. - [ ] They are based on the lawyer's customary rate. - [x] They are generally billed at the attorney's customary rate. > **Explanation:** Once the scheduled benefits have been exhausted, any additional legal fees are typically billed based on the attorney's customary rates. ### How many legal consultations are often covered annually in a typical prepaid legal insurance plan? - [x] Three consultations per year - [ ] One per month - [ ] Unlimited consultations - [ ] Only during emergencies > **Explanation:** A typical prepaid legal insurance plan may provide coverage for only three legal consultations a year. ### What type of insurance policy is legal expense insurance usually sold as? - [x] Group basis - [ ] Individual basis - [ ] Family basis - [ ] Corporate basis > **Explanation:** Legal expense insurance is typically sold on a group basis, often provided through employers or other organizations. ### Which level of acceptance has legal expense insurance experienced in different locales? - [ ] Universal acceptance - [x] Wide acceptance in some areas, limited acceptance in others - [ ] Rejection overall - [ ] Moderate acceptance without regional variance > **Explanation:** Legal expense insurance has experienced wide acceptance in some regions while only seeing limited acceptance in others. ### What aspect of legal expense insurance makes it convenient for employees? - [x] Prepaid benefits and scheduled services eliminate the worry of the potential high upfront costs. - [ ] It covers all conceivable legal expenses without additional cost. - [ ] It directly compensates employees for any legal fees. - [ ] Employers provide unlimited legal consultations. > **Explanation:** Prepaid benefits and scheduled services under legal expense insurance eliminate major upfront costs, making it convenient in comparison to paying out-of-pocket immediately for legal services. ### What type of benefits does legal expense insurance primarily offer? - [x] Scheduled benefits covering specific legal services. - [ ] Comprehensive health benefits. - [ ] Disbursement for criminal defense. - [ ] Travel insurance. > **Explanation:** Legal expense insurance primarily offers scheduled benefits covering specific legal services as per the agreement. ### Can legal expense insurance be considered as an employee benefit? - [x] Yes, it is often offered as an employee benefit. - [ ] No, it is solely a personal purchase. - [ ] Only for high-level executives. - [ ] Only when combined with health insurance. > **Explanation:** Legal expense insurance is indeed often offered as an employee benefit along with other non-wage compensations. ### Does legal expense insurance cover post-exhaustion legal fees? - [ ] Yes, it covers all legal fees indefinitely. - [x] No, post-exhaustion fees are billed as per customary rates. - [ ] Only if located within specific jurisdictions. - [ ] Only if the initial service is completed. > **Explanation:** Legal expense insurance does not cover post-exhaustion legal fees; these fees are generally billed at the attorney’s customary rate after initial scheduled benefits are used up.