Question 1

An insured in a preferred provider organization pays less out of his pocket if he chooses to use:

Accepted Answer

A)  an out-of-network physician 
B)  a preferred provider 
C)  his/her regular physician 
D)  a chiropractor 
A)  an out-of-network physician 
B)  a preferred provider 
C)  his/her regular physician 
D)  a chiropractor

Question 2

Distinguish between cost shifting and cost containment in health care.

Accepted Answer

Cost shifting occurs when merely the cos

Question 3

Which is the most desirable type of health insurance renewability feature?

Accepted Answer

A)  Nonrenewable 
B)  Noncancellable 
C)  Guaranteed renewable 
D)  Optionally renewable 
A)  Nonrenewable 
B)  Noncancellable 
C)  Guaranteed renewable 
D)  Optionally renewable

Question 4

Which of the following is not typically included in a major medical insurance policy?

Accepted Answer

A)  Large deductible 
B)  Participating provision 
C)  Large number of exclusions 
D)  High face amount 
A)  Large deductible 
B)  Participating provision 
C)  Large number of exclusions 
D)  High face amount

Question 5

Medicaid requires recipients to exhaust all other assets before they can receive benefits.

Accepted Answer

A) True 
 B)False

Question 6

What is the difference between an HMO and a PPO in providing health care?

Accepted Answer

An HMO requires a capitation fee for eac

Question 7

Medical expense insurance, such as that provided by Blue Cross, has relatively large deductible provisions.

Accepted Answer

A) True 
 B)False

Question 8

Long-term care policies:

Accepted Answer

A)  are not standardized 
B)  are purchased by more than 70% of U.S. senior citizens 
C)  provide coverage that is normally triggered by an inability of the insured to understand the ramifications of their actions 
D)  are legal in only 38 states 
A)  are not standardized 
B)  are purchased by more than 70% of U.S. senior citizens 
C)  provide coverage that is normally triggered by an inability of the insured to understand the ramifications of their actions 
D)  are legal in only 38 states

Question 9

In 2008 the U.S. spent ________% of GDP on health care.

Accepted Answer

A)  8.8 
B)  10.3 
C)  16.4 
D)  22 
A)  8.8 
B)  10.3 
C)  16.4 
D)  22

Question 10

Explain why the definition of disability is important in disability income contracts. Provide some examples of disability showing the range of definitions.

Accepted Answer

The definition of disability is importan

Question 11

Critics of HMOs say that:

Accepted Answer

A)  HMO members have too many choices of doctors they can use and services they can receive 
B)  HMO doctors waste money because they have no incentive to control costs 
C)  the 10% deductible required for every procedure is cost-prohibitive for most citizens 
D)  none of the above 
A)  HMO members have too many choices of doctors they can use and services they can receive 
B)  HMO doctors waste money because they have no incentive to control costs 
C)  the 10% deductible required for every procedure is cost-prohibitive for most citizens 
D)  none of the above

Question 12

Which one of the following is not a reason for the increase in U.S. health care costs?

Accepted Answer

A)  More expensive medical equipment and buildings 
B)  Increased medical malpractice insurance costs 
C)  Hospital labor operating costs 
D)  Increased cost of funeral expenses 
A)  More expensive medical equipment and buildings 
B)  Increased medical malpractice insurance costs 
C)  Hospital labor operating costs 
D)  Increased cost of funeral expenses

Question 13

A common exclusion in health insurance policies is any preexisting condition.

Accepted Answer

A) True 
 B)False

Question 14

Individual Medicaid policies must return in benefits at least 60 percent of the premium earned.

Accepted Answer

A) True 
 B)False

An insured in a preferred provider organization pays less out of his pocket if he chooses to use:

Distinguish between cost shifting and cost containment in health care.

Which is the most desirable type of health insurance renewability feature?

Which of the following is not typically included in a major medical insurance policy?

Medicaid requires recipients to exhaust all other assets before they can receive benefits.

What is the difference between an HMO and a PPO in providing health care?

Medical expense insurance, such as that provided by Blue Cross, has relatively large deductible provisions.

Long-term care policies:

In 2008 the U.S. spent ________% of GDP on health care.

Explain why the definition of disability is important in disability income contracts. Provide some examples of disability showing the range of definitions.

Critics of HMOs say that:

Which one of the following is not a reason for the increase in U.S. health care costs?

A common exclusion in health insurance policies is any preexisting condition.

Individual Medicaid policies must return in benefits at least 60 percent of the premium earned.

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

Commercial Liability Insurance

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Exam 18: Health Insurance and Disability Income

An insured in a preferred provider organization pays less out of his pocket if he chooses to use:

Distinguish between cost shifting and cost containment in health care.

Which is the most desirable type of health insurance renewability feature?

Which of the following is not typically included in a major medical insurance policy?

Medicaid requires recipients to exhaust all other assets before they can receive benefits.

What is the difference between an HMO and a PPO in providing health care?

Medical expense insurance, such as that provided by Blue Cross, has relatively large deductible provisions.

Long-term care policies:

In 2008 the U.S. spent ________% of GDP on health care.

Explain why the definition of disability is important in disability income contracts. Provide some examples of disability showing the range of definitions.

Critics of HMOs say that:

Which one of the following is not a reason for the increase in U.S. health care costs?

A common exclusion in health insurance policies is any preexisting condition.

Individual Medicaid policies must return in benefits at least 60 percent of the premium earned.

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

Commercial Liability Insurance

Filters