Question 1

What health insurance provision prevents your health insurance company from dropping you if you have too many medical claims on your policy?

Accepted Answer

A)  Guaranteed repurchase provision 
B)  Guaranteed repeat provision 
C)  Guaranteed renewability provision 
D)  Guaranteed insurability provision. 
A)  Guaranteed repurchase provision 
B)  Guaranteed repeat provision 
C)  Guaranteed renewability provision 
D)  Guaranteed insurability provision.

Question 2

Under COBRA, if you work for a company with at least 20 employees, you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company, depending on why you left.

Accepted Answer

A)  zero to six months 
B)  6-12 months 
C)  72-84 months 
D)  18-36 months 
E)  none of the above 
A)  zero to six months 
B)  6-12 months 
C)  72-84 months 
D)  18-36 months 
E)  none of the above

Question 3

Individual practice association, group practice, and point-of-service plans are the three basic types of

Accepted Answer

A)  Blue Cross Blue Shield plans. 
B)  traditional indemnity plans. 
C)  major medical expense plans. 
D)  health maintenance organizations. 
E)  fee-for-service policies. 
A)  Blue Cross Blue Shield plans. 
B)  traditional indemnity plans. 
C)  major medical expense plans. 
D)  health maintenance organizations. 
E)  fee-for-service policies.

Question 4

Your health care coverage is with a PPO. For approved, in-network providers your deductible is $500 and your coinsurance provision is 80%. For out-of-network providers, your deductible is $1,000 and your coinsurance provision is 70%. Assume there is no co-pay provision and you have no other claims this calendar year. You have decided to go to a specialist that is not in the network and the bill is $1,400. How much will you have to pay out-of-pocket?

Accepted Answer

A)  $1,400 
B)  $1,120 
C)  $420 
D)  $1,320 
A)  $1,400 
B)  $1,120 
C)  $420 
D)  $1,320

Question 5

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies. John is both the ________ and the ________ who will receive the ________ upon the death of Betty, the ________.

Accepted Answer

A)  insured; beneficiary; money; policyholder 
B)  policy owner; beneficiary; face amount; insured 
C)  policy owner; insured; face amount; beneficiary 
D)  beneficiary; premium payer; face amount; policy holder 
E)  none of the above 
A)  insured; beneficiary; money; policyholder 
B)  policy owner; beneficiary; face amount; insured 
C)  policy owner; insured; face amount; beneficiary 
D)  beneficiary; premium payer; face amount; policy holder 
E)  none of the above

Question 6

With decreasing term life insurance, the face amount of the policy remains constant, but the premiums decrease.

Accepted Answer

A) True 
 B)False

Question 7

With some disability income policies, you may receive partial benefits if you are able to return to work with a part-time schedule.

Accepted Answer

A) True 
 B)False

Question 8

Wayne and Sarah are trying to manage the risk they face in life a best as they can. They are following Principle 7 which states:

Accepted Answer

A)  The best protection is knowledge. 
B)  Protect yourself against major catastrophes. 
C)  Nothing happens without a plan. 
D)  Diversification reduces risk. 
E)  The best insurance is prevention. 
A)  The best protection is knowledge. 
B)  Protect yourself against major catastrophes. 
C)  Nothing happens without a plan. 
D)  Diversification reduces risk. 
E)  The best insurance is prevention.

Question 9

Nancy and Leonard are married. They have two children who will be financially dependent for the next 20 years. They are taking out life insurance on Leonard, the bread winner. Nancy is sure she is able to get a 9.5% rate of return on the policy settlement. Using the earnings multiple approach calculate how much life insurance they should take out on Leonard.

Accepted Answer

A)  $1,038,225 
B)  $1,704,952 
C)  $549,893 
D)  $301,471 
E)  none of the above 
A)  $1,038,225 
B)  $1,704,952 
C)  $549,893 
D)  $301,471 
E)  none of the above

Question 10

The best strategy for health insurance coverage is to purchase a comprehensive policy. Of the following, which additional coverage should you not buy if it is not provided at work or in your individual policy?

Accepted Answer

A)  accident 
B)  dread disease 
C)  dental 
D)  eyewear 
E)  you should not buy any of the above if your employer does not provide them 
A)  accident 
B)  dread disease 
C)  dental 
D)  eyewear 
E)  you should not buy any of the above if your employer does not provide them

Question 11

Compare and contrast group and individual health insurance policies.

Accepted Answer

Group insurance, which is insurance avai

Question 12

The exclusion provisions in Dan's health care insurance at work would likely include all of the following situations except

Accepted Answer

A)  automobile accidents. 
B)  mental illness. 
C)  self-inflicted injuries. 
D)  certain dental procedures. 
E)  injuries incurred while committing a felony. 
A)  automobile accidents. 
B)  mental illness. 
C)  self-inflicted injuries. 
D)  certain dental procedures. 
E)  injuries incurred while committing a felony.

Question 13

The earnings multiple approach is based on the notion that you want to replace a stream of annual income that's lost due to the death of a breadwinner.

Accepted Answer

A) True 
 B)False

Question 14

There are some health care providers who do not accept flexible spending account payments.

Accepted Answer

A) True 
 B)False

Question 15

Of the following life insurance policies - term, whole life, universal life, variable life - two have fixed death benefits. Which are they?

Accepted Answer

A)  term and variable life 
B)  term and universal life 
C)  term and whole life 
D)  whole life and universal life 
E)  whole life and variable life 
A)  term and variable life 
B)  term and universal life 
C)  term and whole life 
D)  whole life and universal life 
E)  whole life and variable life

Question 16

Compare and contrast fee-for-service and managed health care plans.

Accepted Answer

Fee-for-service or traditional indemnity

Question 17

What is the main purpose of life insurance?

Accepted Answer

The main purpose of life insurance is to

Question 18

Choose the option(s) available in the nonforfeiture clause of a cash-value life policy.

Accepted Answer

A)  Exchange the policy for a paid-up term policy of equal face value. 
B)  Receive the policy's cash value. 
C)  Retain rights to a death benefit. 
D)  Exchange the policy's cash value for a paid-up policy with a reduced face value. 
E)  A, B, and D above 
A)  Exchange the policy for a paid-up term policy of equal face value. 
B)  Receive the policy's cash value. 
C)  Retain rights to a death benefit. 
D)  Exchange the policy's cash value for a paid-up policy with a reduced face value. 
E)  A, B, and D above

Question 19

Some disability insurance policies offer residual or partial payments when returning to work part-time. These payments are especially desirable for those who are ________.

Accepted Answer

A)  under the age of 40 
B)  over the age of 50 
C)  one year away from retirement 
D)  self-employed 
E)  none of the above 
A)  under the age of 40 
B)  over the age of 50 
C)  one year away from retirement 
D)  self-employed 
E)  none of the above

Question 20

Tell how a PPO is different from a fee-for-service or HMO plan.

Accepted Answer

A preferred provider organization is a b

What health insurance provision prevents your health insurance company from dropping you if you have too many medical claims on your policy?

Under COBRA, if you work for a company with at least 20 employees, you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company, depending on why you left.

Individual practice association, group practice, and point-of-service plans are the three basic types of

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies. John is both the and the who will receive the upon the death of Betty, the .

With decreasing term life insurance, the face amount of the policy remains constant, but the premiums decrease.

With some disability income policies, you may receive partial benefits if you are able to return to work with a part-time schedule.

Wayne and Sarah are trying to manage the risk they face in life a best as they can. They are following Principle 7 which states:

The best strategy for health insurance coverage is to purchase a comprehensive policy. Of the following, which additional coverage should you not buy if it is not provided at work or in your individual policy?

Compare and contrast group and individual health insurance policies.

The exclusion provisions in Dan's health care insurance at work would likely include all of the following situations except

The earnings multiple approach is based on the notion that you want to replace a stream of annual income that's lost due to the death of a breadwinner.

There are some health care providers who do not accept flexible spending account payments.

Of the following life insurance policies - term, whole life, universal life, variable life - two have fixed death benefits. Which are they?

Compare and contrast fee-for-service and managed health care plans.

What is the main purpose of life insurance?

Choose the option(s) available in the nonforfeiture clause of a cash-value life policy.

Some disability insurance policies offer residual or partial payments when returning to work part-time. These payments are especially desirable for those who are ________.

Tell how a PPO is different from a fee-for-service or HMO plan.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 9: Life and Health Insurance

What health insurance provision prevents your health insurance company from dropping you if you have too many medical claims on your policy?

Under COBRA, if you work for a company with at least 20 employees, you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company, depending on why you left.

Individual practice association, group practice, and point-of-service plans are the three basic types of

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies. John is both the ________ and the ________ who will receive the ________ upon the death of Betty, the ________.

With decreasing term life insurance, the face amount of the policy remains constant, but the premiums decrease.

With some disability income policies, you may receive partial benefits if you are able to return to work with a part-time schedule.

Wayne and Sarah are trying to manage the risk they face in life a best as they can. They are following Principle 7 which states:

The best strategy for health insurance coverage is to purchase a comprehensive policy. Of the following, which additional coverage should you not buy if it is not provided at work or in your individual policy?

Compare and contrast group and individual health insurance policies.

The exclusion provisions in Dan's health care insurance at work would likely include all of the following situations except

The earnings multiple approach is based on the notion that you want to replace a stream of annual income that's lost due to the death of a breadwinner.

There are some health care providers who do not accept flexible spending account payments.

Of the following life insurance policies - term, whole life, universal life, variable life - two have fixed death benefits. Which are they?

Compare and contrast fee-for-service and managed health care plans.

What is the main purpose of life insurance?

Choose the option(s) available in the nonforfeiture clause of a cash-value life policy.

Some disability insurance policies offer residual or partial payments when returning to work part-time. These payments are especially desirable for those who are ________.

Tell how a PPO is different from a fee-for-service or HMO plan.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies. John is both the and the who will receive the upon the death of Betty, the .