Question 1

Use the following two columns of items to answer the matching questions below:
-health insurance
A)the nation's largest health care insurer
B)covers health care expenses incurred by policyholders to limit their potential liabilities and ensure that they will receive the necessary medical care

Accepted Answer

The answer of Use the following two columns of items...

Question 2

Health insurance protects net worth by minimizing the chance that you will have to reduce savings or incur debt when you require medical attention.

Accepted Answer

A) True 
 B)False

Question 3

Disability insurance would probably cost the most for which of the following people?

Accepted Answer

A)  A certified public accountant (CP
A)  
B)  An office worker 
C)  A construction worker 
D)  A telemarketer

Question 4

Beginning in 2014, health insurers could not deny applicants based on pre-existing conditions.

Accepted Answer

A) True 
 B)False

Question 5

Indemnity health plans

Accepted Answer

A)  greatly restrict the choice of health care providers. 
B)  may require you to pay the doctor and then get reimbursed. 
C)  require you to get approval to see a specialist. 
D)  are the least expensive of all health care plans.

Question 6

Which statement regarding COBRA is true?

Accepted Answer

A)  The act applies to private firms and agencies of state government but not to federal government agencies. 
B)  COBRA allows you to continue your health coverage for two years after you stop working. 
C)  The act was passed in 2010. 
D)  If you retire and are not yet eligible to receive Medicare, you are not covered by COBRA.

Question 7

Regarding the definition of disability,

Accepted Answer

A)  it is the same for all disability policies. 
B)  it varies from one disability policy to another. 
C)  the same definition is used by the insurance industry and Social Security. 
D)  the meaning can change over the life of your disability policy.

Question 8

Which of the following is an advantage of a PPO compared to an HMO?

Accepted Answer

A)  The premiums are lower. 
B)  There are more choices of specialized health care providers. 
C)  There are no out-of-pocket expenses. 
D)  No approval is needed to see a specialist.

Question 9

Although indemnity plans are less flexible than managed care plans, they charge lower rates.

Accepted Answer

A) True 
 B)False

Question 10

How much would be owed by the patient on a $3,000 bill if a PPO uses a discount on charge arrangement wherein the percentage paid to the provider is 70% and the patient's co-pay, as specified by the PPO, is 20 percent?

Accepted Answer

A)  $600 
B)  $700 
C)  $420 
D)  $200

Question 11

As you develop your long-term personal financial plan, consideration of purchasing disability insurance and paying the premiums is very important when

Accepted Answer

A)  you are raising a family and have significant financial responsibilities. 
B)  you are nearing retirement and want to protect your net worth. 
C)  you begin collecting social security as a way to supplement your retirement income. 
D)  you begin to feel ill.

Question 12

Most people obtain health insurance through group plans offered by employers.

Accepted Answer

A) True 
 B)False

Question 13

Regarding a flexible spending account, which of the following is not true?

Accepted Answer

A)  You may put a predetermined amount of your pre-tax salary in the account monthly. 
B)  The money may be used throughout the year to pay medical or dental expenses tax-free. 
C)  If you don't use the funds during the year, you lose them. 
D)  Your employer will match your funds dollar-for-dollar.

Question 14

The federal law that allows you to continue health insurance coverage through your former employer's plan for 18 months after you stop work is

Accepted Answer

A)  HIPAA. 
B)  COBRA. 
C)  Social Security. 
D)  Medicare.

Question 15

Generally, disability income policies with shorter waiting periods have lower premiums.

Accepted Answer

A) True 
 B)False

Question 16

Medigap insurance, intended to supplement Medicare, is sold and serviced by the federal government.

Accepted Answer

A) True 
 B)False

Question 17

Private health insurance plans contain all of the following coverage, except

Accepted Answer

A)  hospital insurance. 
B)  nursing home insurance. 
C)  physician insurance. 
D)  surgical insurance.

Question 18

When considering an HMO or PPO, which of the following would you not consider regarding the cost of the plan?

Accepted Answer

A)  Monthly premiums 
B)  Coinsurance 
C)  Number of doctors accepting new patients 
D)  Maximum out-of-pocket expenses per year

Question 19

________ is the government program that provides health insurance to individuals who are 65 years of age or older.

Accepted Answer

A)  Medicaid 
B)  Medicare 
C)  HMO 
D)  Blue Cross and Blue Shield

Question 20

Private health insurance plans contain hospital insurance, physician insurance, and surgical insurance.

Accepted Answer

A) True 
 B)False

Exam 12: Health and Disability Insurance

Use the following two columns of items to answer the matching questions below: -health insurance A)the nation's largest health care insurer B)covers health care expenses incurred by policyholders to limit their potential liabilities and ensure that they will receive the necessary medical care

Health insurance protects net worth by minimizing the chance that you will have to reduce savings or incur debt when you require medical attention.

Disability insurance would probably cost the most for which of the following people?

Beginning in 2014, health insurers could not deny applicants based on pre-existing conditions.

Indemnity health plans

Which statement regarding COBRA is true?

Regarding the definition of disability,

Which of the following is an advantage of a PPO compared to an HMO?

Although indemnity plans are less flexible than managed care plans, they charge lower rates.

How much would be owed by the patient on a $3,000 bill if a PPO uses a discount on charge arrangement wherein the percentage paid to the provider is 70% and the patient's co-pay, as specified by the PPO, is 20 percent?

As you develop your long-term personal financial plan, consideration of purchasing disability insurance and paying the premiums is very important when

Most people obtain health insurance through group plans offered by employers.

Regarding a flexible spending account, which of the following is not true?

The federal law that allows you to continue health insurance coverage through your former employer's plan for 18 months after you stop work is

Generally, disability income policies with shorter waiting periods have lower premiums.

Medigap insurance, intended to supplement Medicare, is sold and serviced by the federal government.

Private health insurance plans contain all of the following coverage, except

When considering an HMO or PPO, which of the following would you not consider regarding the cost of the plan?

________ is the government program that provides health insurance to individuals who are 65 years of age or older.

Private health insurance plans contain hospital insurance, physician insurance, and surgical insurance.