Question 1

Disability income insurance policies are required to provide benefits for disabled policyholders until age 65.

Accepted Answer

A) True 
 B)False

Question 2

Cameron,age 25,sustained a debilitating hand injury and was unable to perform his job as a viola player in the local orchestra for 45 days.His employer has a disability income insurance policy that pays 70% of take-home pay with an elimination period of 60 days and coverage to age 65.Given this information,which of the following is true for Cameron?

Accepted Answer

A)  He will receive disability income for 15 days. 
B)  His employer will pay 70% of his current income for 40 years. 
C)  He will not be eligible for any disability income because his disability ended before the elimination period ended. 
D)  He will receive disability income for 45 days. 
E)  His employer will estimate his average salary through age 65 to determine his disability income. 
A)  He will receive disability income for 15 days. 
B)  His employer will pay 70% of his current income for 40 years. 
C)  He will not be eligible for any disability income because his disability ended before the elimination period ended. 
D)  He will receive disability income for 45 days. 
E)  His employer will estimate his average salary through age 65 to determine his disability income.

Question 3

COBRA stands for

Accepted Answer

A)  Coverage of Benefits Reduction Act. 
B)  Continuation of Benefits for Retirees Act. 
C)  Consolidated Omnibus Budget Reconciliation Act. 
D)  Coverage of Benefits for the Retired Act. 
E)  Consolidation of Benefit Reapplication Act. 
A)  Coverage of Benefits Reduction Act. 
B)  Continuation of Benefits for Retirees Act. 
C)  Consolidated Omnibus Budget Reconciliation Act. 
D)  Coverage of Benefits for the Retired Act. 
E)  Consolidation of Benefit Reapplication Act.

Question 4

Rising health costs are due to all of the following except

Accepted Answer

A)  Costs of prescription drugs. 
B)  The growing number of uninsured. 
C)  Advancements in medical technology. 
D)  Baby boomers using fewer health care services. 
E)  The overweight population. 
A)  Costs of prescription drugs. 
B)  The growing number of uninsured. 
C)  Advancements in medical technology. 
D)  Baby boomers using fewer health care services. 
E)  The overweight population.

Question 5

Which of the following about individual health insurance policies is NOT correct?

Accepted Answer

A)  They can cover individuals. 
B)  They are used by the self-employed. 
C)  They can provide family coverage. 
D)  All insurance companies that offer this type of policy are required to charge the same rates. 
E)  They can be purchased directly from the company of your choice. 
A)  They can cover individuals. 
B)  They are used by the self-employed. 
C)  They can provide family coverage. 
D)  All insurance companies that offer this type of policy are required to charge the same rates. 
E)  They can be purchased directly from the company of your choice.

Question 6

With a guaranteed renewable health insurance policy,the insurer is permitted to raise premiums for all members of a group.

Accepted Answer

A) True 
 B)False

Question 7

COBRA and the Health Insurance Portability and Accountability Act of 1996 have improved health insurance coverage options for individuals and families who may have changed jobs or lost a job.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following activities is NOT a step being taken to reduce health care costs?

Accepted Answer

A)  Community health education programs motivate people to take better care of themselves. 
B)  Physicians encourage patients to pay cash for routine medical care and lab tests. 
C)  Programs to carefully review health care fees are available. 
D)  Involvement in community health planning can help achieve a better balance between health needs and health care resources. 
E)  All of these activities can reduce health care costs. 
A)  Community health education programs motivate people to take better care of themselves. 
B)  Physicians encourage patients to pay cash for routine medical care and lab tests. 
C)  Programs to carefully review health care fees are available. 
D)  Involvement in community health planning can help achieve a better balance between health needs and health care resources. 
E)  All of these activities can reduce health care costs.

Question 9

Most people receive health insurance from

Accepted Answer

A)  Individual plans. 
B)  Their bank or lending institution. 
C)  A plan offered by their employer. 
D)  COBRA. 
E)  None of these-most do not have health insurance coverage. 
A)  Individual plans. 
B)  Their bank or lending institution. 
C)  A plan offered by their employer. 
D)  COBRA. 
E)  None of these-most do not have health insurance coverage.

Question 10

Georgia has a health insurance policy that includes a deductible of $500 and a coinsurance of 20%.If her total bill is $3,000,how much will she be required to pay?

Accepted Answer

Her amount due = Deductible +

Question 11

All group health insurance plans provide the same level of protection.

Accepted Answer

A) True 
 B)False

Question 12

Who is most likely to use a home health care agency?

Accepted Answer

A)  A mother who is looking for a plan to cover immunizations for her children. 
B)  A healthy young adult. 
C)  A family with teenagers who need annual check-ups for sports at school. 
D)  An elderly neighbor. 
E)  All of these would be likely to use a home health care agency. 
A)  A mother who is looking for a plan to cover immunizations for her children. 
B)  A healthy young adult. 
C)  A family with teenagers who need annual check-ups for sports at school. 
D)  An elderly neighbor. 
E)  All of these would be likely to use a home health care agency.

Question 13

Which of the following is NOT a private health care plan?

Accepted Answer

A)  Health maintenance organization (HMO) 
B)  Home health care agency 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO) 
A)  Health maintenance organization (HMO) 
B)  Home health care agency 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO)

Question 14

How many people in the United States do not have health insurance?

Accepted Answer

A)  500,000 
B)  2 million 
C)  8 million 
D)  27 million 
E)  Over 50 million 
A)  500,000 
B)  2 million 
C)  8 million 
D)  27 million 
E)  Over 50 million

Question 15

Xavier's employer offers a health plan that stresses preventive services and covers routine immunizations and checkups,screening programs,and diagnostic tests.What kind of plan does his employer offer?

Accepted Answer

A)  Health maintenance organization (HMO) 
B)  Private insurance company 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO) 
A)  Health maintenance organization (HMO) 
B)  Private insurance company 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO)

Question 16

Nancy is studying the health insurance plan options offered by her employer.She wants a policy that will have the insurance pay a percentage of her medical expenses after she meets her deductible.She should review the

Accepted Answer

A)  Deductible. 
B)  Coinsurance. 
C)  Stop-loss provision. 
D)  Hospital indemnity policy. 
E)  Dread disease policy. 
A)  Deductible. 
B)  Coinsurance. 
C)  Stop-loss provision. 
D)  Hospital indemnity policy. 
E)  Dread disease policy.

Question 17

A PPO is a type of managed care plan.

Accepted Answer

A) True 
 B)False

Question 18

A quality health insurance plan should do all of the following except

Accepted Answer

A)  Offer basic coverage for hospital and doctor bills. 
B)  Impose no unreasonable exclusions. 
C)  Limit out-of-pocket expenses to no more than $3,000 to $5,000 per year. 
D)  Provide at least 120 days' hospital room and board in full. 
E)  Provide a lifetime maximum level of coverage of up to $50,000. 
A)  Offer basic coverage for hospital and doctor bills. 
B)  Impose no unreasonable exclusions. 
C)  Limit out-of-pocket expenses to no more than $3,000 to $5,000 per year. 
D)  Provide at least 120 days' hospital room and board in full. 
E)  Provide a lifetime maximum level of coverage of up to $50,000.

Question 19

The insurance that helps pay hospital,surgical,medical,and other bills with a low deductible is known as a(n)

Accepted Answer

A)  Basic health insurance policy. 
B)  Individual policy. 
C)  Comprehensive major medical policy. 
D)  Hospital indemnity policy. 
E)  Dread disease policy. 
A)  Basic health insurance policy. 
B)  Individual policy. 
C)  Comprehensive major medical policy. 
D)  Hospital indemnity policy. 
E)  Dread disease policy.

Question 20

Medicaid covers

Accepted Answer

A)  Lab services. 
B)  Skilled nursing and home health services. 
C)  Prescription drugs. 
D)  Eyeglasses. 
E)  All of these. 
A)  Lab services. 
B)  Skilled nursing and home health services. 
C)  Prescription drugs. 
D)  Eyeglasses. 
E)  All of these.

Disability income insurance policies are required to provide benefits for disabled policyholders until age 65.

COBRA stands for

Rising health costs are due to all of the following except

Which of the following about individual health insurance policies is NOT correct?

With a guaranteed renewable health insurance policy,the insurer is permitted to raise premiums for all members of a group.

COBRA and the Health Insurance Portability and Accountability Act of 1996 have improved health insurance coverage options for individuals and families who may have changed jobs or lost a job.

Which of the following activities is NOT a step being taken to reduce health care costs?

Most people receive health insurance from

Georgia has a health insurance policy that includes a deductible of $500 and a coinsurance of 20%.If her total bill is $3,000,how much will she be required to pay?

All group health insurance plans provide the same level of protection.

Who is most likely to use a home health care agency?

Which of the following is NOT a private health care plan?

How many people in the United States do not have health insurance?

Xavier's employer offers a health plan that stresses preventive services and covers routine immunizations and checkups,screening programs,and diagnostic tests.What kind of plan does his employer offer?

Nancy is studying the health insurance plan options offered by her employer.She wants a policy that will have the insurance pay a percentage of her medical expenses after she meets her deductible.She should review the

A PPO is a type of managed care plan.

A quality health insurance plan should do all of the following except

The insurance that helps pay hospital,surgical,medical,and other bills with a low deductible is known as a(n)

Medicaid covers

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 9: Health and Disability Income Insurance

Disability income insurance policies are required to provide benefits for disabled policyholders until age 65.

COBRA stands for

Rising health costs are due to all of the following except

Which of the following about individual health insurance policies is NOT correct?

With a guaranteed renewable health insurance policy,the insurer is permitted to raise premiums for all members of a group.

COBRA and the Health Insurance Portability and Accountability Act of 1996 have improved health insurance coverage options for individuals and families who may have changed jobs or lost a job.

Which of the following activities is NOT a step being taken to reduce health care costs?

Most people receive health insurance from

Georgia has a health insurance policy that includes a deductible of $500 and a coinsurance of 20%.If her total bill is $3,000,how much will she be required to pay?

All group health insurance plans provide the same level of protection.

Who is most likely to use a home health care agency?

Which of the following is NOT a private health care plan?

How many people in the United States do not have health insurance?

Xavier's employer offers a health plan that stresses preventive services and covers routine immunizations and checkups,screening programs,and diagnostic tests.What kind of plan does his employer offer?

Nancy is studying the health insurance plan options offered by her employer.She wants a policy that will have the insurance pay a percentage of her medical expenses after she meets her deductible.She should review the

A PPO is a type of managed care plan.

A quality health insurance plan should do all of the following except

The insurance that helps pay hospital,surgical,medical,and other bills with a low deductible is known as a(n)

Medicaid covers

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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