Question 1

The United States has the fifth highest per capita medical expenditures of any country in the world.

Accepted Answer

A) True 
 B)False

Question 2

The benefit limits provision identifies the minimum benefits that will be paid for days spent in the hospital.

Accepted Answer

A) True 
 B)False

Question 3

Most people receive health insurance under a group plan from

Accepted Answer

A)  Individual plans. 
B)  Their bank or lending institution. 
C)  Their employer. 
D)  COBRA. 
E)  All of the above. 
A)  Individual plans. 
B)  Their bank or lending institution. 
C)  Their employer. 
D)  COBRA. 
E)  All of the above.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

The copayment provision deals with the amount that someone will pay for a bill such as 20% coinsurance.

Accepted Answer

A) True 
 B)False

Question 7

Health insurance is a form of protection that eases the financial burden people may experience as a result of someone's death.

Accepted Answer

A) True 
 B)False

Question 8

Yvonne's employer offers a health plan that has a group of doctors and hospitals that agree to provide specified medical services to members at prearranged fees. This health plan offers some flexibility since members can either visit a physician from a list or go to their own doctors. What kind of plan does her employer offer?

Accepted Answer

A)  Medicaid 
B)  Public insurance company 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO) 
A)  Medicaid 
B)  Public insurance company 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO)

Question 9

A good disability income insurance plan will pay you if you cannot work at any job.

Accepted Answer

A) True 
 B)False

Question 10

A health insurance policy that pays you back for actual expenses is called an indemnity policy.

Accepted Answer

A) True 
 B)False

Question 11

An employer self-funded health plan requires a low level of financial assets.

Accepted Answer

A) True 
 B)False

Question 12

How much does a private income insurance program pay for loss of normal income from a disability?

Accepted Answer

A)  0% 
B)  10-30% 
C)  40-60%, with some plans paying up to 75% 
D)  50-70%, with some plans paying up to 100% 
E)  100% 
A)  0% 
B)  10-30% 
C)  40-60%, with some plans paying up to 75% 
D)  50-70%, with some plans paying up to 100% 
E)  100%

Question 13

Coordination of benefits (COB) provision applies to

Accepted Answer

A)  Combining health insurance and disability insurance coverage. 
B)  Combining all group and individual insurance coverages. 
C)  Combining the Health Insurance Portability and Accountability Act of 1996 and COBRA. 
D)  Combining three or more disability policies issued for an individual. 
E)  Combining the benefits of two insurance policies issued for a married couple. 
A)  Combining health insurance and disability insurance coverage. 
B)  Combining all group and individual insurance coverages. 
C)  Combining the Health Insurance Portability and Accountability Act of 1996 and COBRA. 
D)  Combining three or more disability policies issued for an individual. 
E)  Combining the benefits of two insurance policies issued for a married couple.

Question 14

This health insurance provision lets your insurer make direct payments to your doctor or hospital.

Accepted Answer

A)  Assigned benefits 
B)  Benefit limits 
C)  Exclusions and limitations 
D)  Internal limits 
E)  Service benefits 
A)  Assigned benefits 
B)  Benefit limits 
C)  Exclusions and limitations 
D)  Internal limits 
E)  Service benefits

Question 15

Surgical expense insurance pays all or part of the surgeon's fees for an operation in a doctor's office.

Accepted Answer

A) True 
 B)False

Question 16

A deductible is a set amount you must pay toward medical expenses before the insurance company pays benefits.

Accepted Answer

A) True 
 B)False

Question 17

A provision in a health insurance policy that sets specific levels of repayment for certain services is called

Accepted Answer

A)  Reimbursement. 
B)  Out-of-pocket limit. 
C)  Deductible. 
D)  Internal limit. 
E)  Indemnity. 
A)  Reimbursement. 
B)  Out-of-pocket limit. 
C)  Deductible. 
D)  Internal limit. 
E)  Indemnity.

Question 18

All of the following are sources of disability income except

Accepted Answer

A)  Worker's compensation. 
B)  Employer plans. 
C)  Social Security. 
D)  Private income insurance programs. 
E)  All of these are sources of disability income. 
A)  Worker's compensation. 
B)  Employer plans. 
C)  Social Security. 
D)  Private income insurance programs. 
E)  All of these are sources of disability income.

Question 19

A disability policy with a longer elimination period typically charges lower premiums than a policy with a short elimination period.

Accepted Answer

A) True 
 B)False

Question 20

The type of health insurance coverage that takes up where basic health insurance coverage leaves off is

Accepted Answer

A)  Dental expense. 
B)  Surgical expense. 
C)  Hospital expense. 
D)  Physician expense. 
E)  Major medical expense. 
A)  Dental expense. 
B)  Surgical expense. 
C)  Hospital expense. 
D)  Physician expense. 
E)  Major medical expense.

The United States has the fifth highest per capita medical expenditures of any country in the world.

The benefit limits provision identifies the minimum benefits that will be paid for days spent in the hospital.

Most people receive health insurance under a group plan from

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

The copayment provision deals with the amount that someone will pay for a bill such as 20% coinsurance.

Health insurance is a form of protection that eases the financial burden people may experience as a result of someone's death.

A good disability income insurance plan will pay you if you cannot work at any job.

A health insurance policy that pays you back for actual expenses is called an indemnity policy.

An employer self-funded health plan requires a low level of financial assets.

How much does a private income insurance program pay for loss of normal income from a disability?

Coordination of benefits (COB) provision applies to

This health insurance provision lets your insurer make direct payments to your doctor or hospital.

Surgical expense insurance pays all or part of the surgeon's fees for an operation in a doctor's office.

A deductible is a set amount you must pay toward medical expenses before the insurance company pays benefits.

A provision in a health insurance policy that sets specific levels of repayment for certain services is called

All of the following are sources of disability income except

A disability policy with a longer elimination period typically charges lower premiums than a policy with a short elimination period.

The type of health insurance coverage that takes up where basic health insurance coverage leaves off is

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, 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 Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 9: Health and Disability Insurance

The United States has the fifth highest per capita medical expenditures of any country in the world.

The benefit limits provision identifies the minimum benefits that will be paid for days spent in the hospital.

Most people receive health insurance under a group plan from

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

The copayment provision deals with the amount that someone will pay for a bill such as 20% coinsurance.

Health insurance is a form of protection that eases the financial burden people may experience as a result of someone's death.

A good disability income insurance plan will pay you if you cannot work at any job.

A health insurance policy that pays you back for actual expenses is called an indemnity policy.

An employer self-funded health plan requires a low level of financial assets.

How much does a private income insurance program pay for loss of normal income from a disability?

Coordination of benefits (COB) provision applies to

This health insurance provision lets your insurer make direct payments to your doctor or hospital.

Surgical expense insurance pays all or part of the surgeon's fees for an operation in a doctor's office.

A deductible is a set amount you must pay toward medical expenses before the insurance company pays benefits.

A provision in a health insurance policy that sets specific levels of repayment for certain services is called

All of the following are sources of disability income except

A disability policy with a longer elimination period typically charges lower premiums than a policy with a short elimination period.

The type of health insurance coverage that takes up where basic health insurance coverage leaves off is

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, 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 Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters