Exam 9: Insuring Your Health

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -A college graduate who is no longer included as a "child" on her parent's employer group insurance policy can buy disability income insurance [18 | 36] months as a result of COBRA.

Bob and Barbara Castle are each 39 years old and have sought your advice with regard to their financial affairs.Bob is a school administrator making $75,000 per year and Barbara is not employed outside of the home.The Castles' net worth is approximately $190,000.They have three kids ages,6,10,& 14.You have determined that the Castles currently have adequate life,health,auto,and homeowner's insurance.Which of the following forms of insurance is likely to fulfill their highest priority risk management need?

John Smith (a professional basketball player)severely injured his hamstring and will be unable to play basketball for 9 months.Assuming he accumulated enough "quarters of coverage" for eligibility,how many month will he receive Social Security disability income insurance?

Buying cancer insurance would be considered a requirement since cancer is prevalent.

Which of the following programs is a public assistance program that provides health insurance benefits only to those who arte unable to pay for healthcare?

Generally,insurance is more reasonably priced through group plans than as individual policies.

Your right to continue a health insurance policy if you choose is known as

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Health insurance is considered to be one of the most complex insurance programs.

An elimination period is a term that applies to disability insurance and does not have any meaning in long-term care insurance.

A "coordination of benefits" provision in a health insurance policy provides which of the following benefits?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Dependent children [regardless of age | up to a stated maximum age] will usually be covered by your health insurance policy.

Nick and Sheila Preston are married and have purchased a comprehensive major medical policy which covers them and their two sons,Wally and Brent.The policy has a $500 calendar year family deductible,a $2,500 stop-loss provision,and an 80% coinsurance clause.The following losses occur: On January 1,2004 Sheila was treated for an infection at a cost of $200,on July 1,2004 Wally was treated for an injury suffered while waterskiing at a cost of $10,000,on December 5,2004 Nick underwent eye surgery at a cost of $1,500,and on January 5,2005 Brent was treated for a broken leg at a cost of $2,000. How much will the insurer pay for each of these losses?

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -An individual receiving health care [could | could not] receive multiple payments from more than one insurance company for this care.

The protection need that most people do not adequately address is most often replacement of lost income.

Which of the following best approximates the length of the average nursing home stay?

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

A policy with an "own occupation" definition is generally more expensive than a policy with an "any occupation for which reasonable suited" definition of disability.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -When purchasing a long-term care policy,the [guaranteed renewability | optional renewability] provision is recommended.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Medicare [hospital | supplemental medical] insurance requires that those covered pay a monthly premium.