Question 1

The duration of benefits for a disability income insurance plan can be

Accepted Answer

A)  For only a few years. 
B)  Until age 65. 
C)  For life. 
D)  All of these are possibilities. 
E)  None of these is correct. 
A)  For only a few years. 
B)  Until age 65. 
C)  For life. 
D)  All of these are possibilities. 
E)  None of these is correct.

Question 2

Which of the following about individual health insurance policies is correct?

Accepted Answer

A)  They are used by employees of large organizations. 
B)  All insurance companies that offer this type of policy are required to charge the same rates. 
C)  They are primarily for employees of small companies. 
D)  They are permitted for individuals only, not for families. 
E)  They are available for the self-employed or others who are dissatisfied with the coverage that their group plan provides. 
A)  They are used by employees of large organizations. 
B)  All insurance companies that offer this type of policy are required to charge the same rates. 
C)  They are primarily for employees of small companies. 
D)  They are permitted for individuals only, not for families. 
E)  They are available for the self-employed or others who are dissatisfied with the coverage that their group plan provides.

Question 3

Which of the following is INCORRECT about dread disease policies?

Accepted Answer

A)  They are illegal in many states. 
B)  Each policy covers a wide range of conditions. 
C)  They play upon unrealistic fears. 
D)  These policies are usually sold through the mail, in newspapers, and magazines, or by door-to-door salespeople. 
E)  They cover diseases that are already covered if you are insured under a major medical plan. 
A)  They are illegal in many states. 
B)  Each policy covers a wide range of conditions. 
C)  They play upon unrealistic fears. 
D)  These policies are usually sold through the mail, in newspapers, and magazines, or by door-to-door salespeople. 
E)  They cover diseases that are already covered if you are insured under a major medical plan.

Question 4

A PPO is a group of doctors and hospitals that agree to provide health care at rates approved by the insurer

Accepted Answer

A) True 
 B)False

Question 5

Brittany and Brandon are both charged $250 for an office visit to the same specialist. Brittany's reimbursement policy has a deductible of $300. Once she has met the deductible, the policy will cover the full cost of her visits. Brandon's indemnity policy will pay him $150, the maximum amount his plan provides for a visit to any specialist. Which of the following is correct?

Accepted Answer

A)  Brittany will pay less because the policy will cover up to $300 for her visit. 
B)  Brittany will pay more because she must pay the entire bill since she has not met her deductible while Brandon will have part of his bill paid by his policy. 
C)  Brandon will pay $150 and his insurance company will pay $100. 
D)  Brandon will pay more because Brittany will have the first $300 paid by her policy. 
E)  None of these is correct. 
A)  Brittany will pay less because the policy will cover up to $300 for her visit. 
B)  Brittany will pay more because she must pay the entire bill since she has not met her deductible while Brandon will have part of his bill paid by his policy. 
C)  Brandon will pay $150 and his insurance company will pay $100. 
D)  Brandon will pay more because Brittany will have the first $300 paid by her policy. 
E)  None of these is correct.

Question 6

A health reimbursement account (HRA) is funded solely by your employer and gives you a pot of money to spend on health care.

Accepted Answer

A) True 
 B)False

Question 7

Georgia is considering between two health insurance policies. One includes a deductible of $600 and the other includes a coinsurance of 20%. If a bill is $4,000, how much will she be required to pay under the policy with the coinsurance?

Accepted Answer

A)  $0 
B)  $120 
C)  $600 
D)  $800 
E)  $4,000 
A)  $0 
B)  $120 
C)  $600 
D)  $800 
E)  $4,000

Question 8

This type of plan combines features of HMOs and PPOs. It uses a network of participating physicians and medical professionals who have contracted to provide services for certain fees.

Accepted Answer

A)  Home health care agency 
B)  Hospital and medical service plan 
C)  Medicare 
D)  Point-of-service (POS) plan 
E)  Public insurance company 
A)  Home health care agency 
B)  Hospital and medical service plan 
C)  Medicare 
D)  Point-of-service (POS) plan 
E)  Public insurance company

Question 9

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 10

A summary plan description outlines the disadvantages of your health plan along with your legal rights under the Employment Retirement Income Security Act.

Accepted Answer

A) True 
 B)False

Question 11

Mark was severely injured while on vacation and expects to be unable to work for at least 12 months. Because of his injury, he should expect to be eligible for disability income from

Accepted Answer

A)  A public income insurance program. 
B)  Medicaid. 
C)  Medicare. 
D)  Social Security. 
E)  Worker's compensation. 
A)  A public income insurance program. 
B)  Medicaid. 
C)  Medicare. 
D)  Social Security. 
E)  Worker's compensation.

Question 12

Monica's employer offers a health insurance plan with a very high deductible. In addition, her employer provides a fund for her to spend specifically on health care. What kind of plan does she have?

Accepted Answer

A)  FSA 
B)  HRA 
C)  HSA 
D)  Medicare 
E)  Self-funded health plan 
A)  FSA 
B)  HRA 
C)  HSA 
D)  Medicare 
E)  Self-funded health plan

Question 13

After you have reached a certain limit that you must pay for the deductible and coinsurance, the insurance company covers 100% of any additional cost. This 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 14

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 15

A policy that pays you back for actual expenses is called

Accepted Answer

A)  A coinsurance plan. 
B)  A reimbursement plan. 
C)  A deductible plan. 
D)  An indemnity plan. 
E)  A reasonable and customary plan. 
A)  A coinsurance plan. 
B)  A reimbursement plan. 
C)  A deductible plan. 
D)  An indemnity plan. 
E)  A reasonable and customary plan.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Long-term care insurance is used to pay for a stay in a nursing home but not for help at home.

Accepted Answer

A) True 
 B)False

Question 18

Miguel is concerned that the health insurance option he is considering plays upon unrealistic fears. He is most concerned about a

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 19

A health insurance policy that pays you back for actual expenses is called a reimbursement policy.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is correct?

Accepted Answer

A)  A premium reimburses you for hospital stays, doctors' visits, and medications. 
B)  A premium is the amount your employer will pay for your health insurance coverage. 
C)  Disability income insurance pays actual medical costs. 
D)  Medical expense insurance provides payments to make up for income of a person who cannot work as a result of injury or illness. 
E)  Health insurance plans may reimburse an individual for hospital stays, doctors' visits, and medications. 
A)  A premium reimburses you for hospital stays, doctors' visits, and medications. 
B)  A premium is the amount your employer will pay for your health insurance coverage. 
C)  Disability income insurance pays actual medical costs. 
D)  Medical expense insurance provides payments to make up for income of a person who cannot work as a result of injury or illness. 
E)  Health insurance plans may reimburse an individual for hospital stays, doctors' visits, and medications.

The duration of benefits for a disability income insurance plan can be

Which of the following about individual health insurance policies is correct?

Which of the following is INCORRECT about dread disease policies?

A PPO is a group of doctors and hospitals that agree to provide health care at rates approved by the insurer

A health reimbursement account (HRA) is funded solely by your employer and gives you a pot of money to spend on health care.

Georgia is considering between two health insurance policies. One includes a deductible of $600 and the other includes a coinsurance of 20%. If a bill is $4,000, how much will she be required to pay under the policy with the coinsurance?

This type of plan combines features of HMOs and PPOs. It uses a network of participating physicians and medical professionals who have contracted to provide services for certain fees.

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

A summary plan description outlines the disadvantages of your health plan along with your legal rights under the Employment Retirement Income Security Act.

Mark was severely injured while on vacation and expects to be unable to work for at least 12 months. Because of his injury, he should expect to be eligible for disability income from

Monica's employer offers a health insurance plan with a very high deductible. In addition, her employer provides a fund for her to spend specifically on health care. What kind of plan does she have?

After you have reached a certain limit that you must pay for the deductible and coinsurance, the insurance company covers 100% of any additional cost. This is called

COBRA stands for

A policy that pays you back for actual expenses is called

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

Long-term care insurance is used to pay for a stay in a nursing home but not for help at home.

Miguel is concerned that the health insurance option he is considering plays upon unrealistic fears. He is most concerned about a

A health insurance policy that pays you back for actual expenses is called a reimbursement policy.

Which of the following is correct?

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 duration of benefits for a disability income insurance plan can be

Which of the following about individual health insurance policies is correct?

Which of the following is INCORRECT about dread disease policies?

A PPO is a group of doctors and hospitals that agree to provide health care at rates approved by the insurer

A health reimbursement account (HRA) is funded solely by your employer and gives you a pot of money to spend on health care.

Georgia is considering between two health insurance policies. One includes a deductible of $600 and the other includes a coinsurance of 20%. If a bill is $4,000, how much will she be required to pay under the policy with the coinsurance?

This type of plan combines features of HMOs and PPOs. It uses a network of participating physicians and medical professionals who have contracted to provide services for certain fees.

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

A summary plan description outlines the disadvantages of your health plan along with your legal rights under the Employment Retirement Income Security Act.

Mark was severely injured while on vacation and expects to be unable to work for at least 12 months. Because of his injury, he should expect to be eligible for disability income from

Monica's employer offers a health insurance plan with a very high deductible. In addition, her employer provides a fund for her to spend specifically on health care. What kind of plan does she have?

After you have reached a certain limit that you must pay for the deductible and coinsurance, the insurance company covers 100% of any additional cost. This is called

COBRA stands for

A policy that pays you back for actual expenses is called

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

Long-term care insurance is used to pay for a stay in a nursing home but not for help at home.

Miguel is concerned that the health insurance option he is considering plays upon unrealistic fears. He is most concerned about a

A health insurance policy that pays you back for actual expenses is called a reimbursement policy.

Which of the following is correct?

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