Question 1

A ________ is a savings plan offered by some employers that allows each employee to have pretax earnings deposited into a specially designated account for paying qualified medical and dependant care bills.

Accepted Answer

A) medical distribution account 
B) planned provider account 
C) group practice plan 
D) flexible spending account 
E) planned reimbursement account

Question 2

Of the following life insurance policies - term,whole life,universal life,variable life - two have fixed death benefits.Which are they?

Accepted Answer

A) Term and variable life 
B) Term and universal life 
C) Term and whole life 
D) Whole life and universal life 
E) Whole life and variable life

Question 3

For every $100 set aside in a flexible spending account,taxable income is reduced by

Accepted Answer

A) $10. 
B) $25. 
C) $50. 
D) $100. 
E) not enough information available.

Question 4

Sally brings home $50,000 a year to help provide financial support to her family,comprised of her husband and two children.She is considering purchasing life insurance.Using the earnings multiple approach,how much coverage should she purchase using a discount rate of 5% to replace 10 years of earnings?

Accepted Answer

A) $500,000 
B) $386,000 
C) $340,005 
D) $301,148

Question 5

Most long-term care policies require the insured to be unable to perform one or more activities of daily living (ADLs)without assistance.Which of these is included?

Accepted Answer

A) Walking 
B) Eating 
C) Exercising 
D) Dressing 
E) A,B,and D are included.

Question 6

There are some health care providers who do not accept flexible spending account payments.

Accepted Answer

A) True 
 B)False

Question 7

Long-term disability will replace 100% of your income while you are unable to return to work.

Accepted Answer

A) True 
 B)False

Question 8

The ________ is the right of the policyholder to choose to receive the policy's cash value in exchange for the policyholder giving up his or her right to a death benefit.

Accepted Answer

A) nonforfeiture right 
B) cash exchange right 
C) cash-out privilege 
D) residual cash right 
E) none of the above

Question 9

Compare and contrast the three basic types of HMOs.

Accepted Answer

The answer of Compare and contrast the three basic types...

Question 10

Sandra is terrible at saving;therefore her insurance advisor suggested a term life insurance policy for her since it has a saving/investing aspect.

Accepted Answer

A) True 
 B)False

Question 11

Life insurance is not meant to benefit you,its purpose is to protect others in the event of your death.

Accepted Answer

A) True 
 B)False

Question 12

Practically all insurance contracts include a suicide clause stating that the insurance company won't pay off for suicide deaths that occur within the first five years of the contract.

Accepted Answer

A) True 
 B)False

Question 13

One of the provisions of the Affordable Care Act is to prevent insurance companies from denying coverage to consumers with preexisting conditions.

Accepted Answer

A) True 
 B)False

Question 14

It should be everyone's goal to become self-insured when it comes to Life insurance.Explain how and why this should be?

Accepted Answer

The answer of It should be everyone's goal to become...

Question 15

An HSA is a good form of health care coverage for young,healthy people who rarely get sick.

Accepted Answer

A) True 
 B)False

Question 16

Statisticians who specialize in estimating the probability of death based on personal characteristics are called

Accepted Answer

A) morbidity analysts. 
B) actuaries. 
C) insurance analysts. 
D) morbidity statisticians. 
E) none of the above.

Question 17

Sylvester and JoAnn have both been laid off work during the last year and are now very poor.They found out that needy families can receive medical benefits through Medicaid.In addition,JoAnn found out that Medicaid can be used

Accepted Answer

A) by the aged. 
B) by the blind. 
C) by disabled persons. 
D) for Medicare premiums,deductibles,and co-payments. 
E) all of the above.

Question 18

Sonny Coltraine was told by a friend that universal life is the best policy.He will find that

Accepted Answer

A) it will have a tax-deferred savings feature. 
B) death benefits are not taxable income. 
C) death benefits and premiums are fixed. 
D) death benefits and premiums are flexible. 
E) A,B,and D above.

Question 19

Which of the types of cash-value policies are permanent insurance?

Accepted Answer

The answer of Which of the types of cash-value policies...

Question 20

Long-term care insurance provides money to help pay for nursing home and home health care expenses.

Accepted Answer

A) True 
 B)False

Exam 9: Life and Health Insurance

A ________ is a savings plan offered by some employers that allows each employee to have pretax earnings deposited into a specially designated account for paying qualified medical and dependant care bills.

Of the following life insurance policies - term,whole life,universal life,variable life - two have fixed death benefits.Which are they?

For every $100 set aside in a flexible spending account,taxable income is reduced by

Most long-term care policies require the insured to be unable to perform one or more activities of daily living (ADLs) without assistance.Which of these is included?

There are some health care providers who do not accept flexible spending account payments.

Long-term disability will replace 100% of your income while you are unable to return to work.

The ________ is the right of the policyholder to choose to receive the policy's cash value in exchange for the policyholder giving up his or her right to a death benefit.

Compare and contrast the three basic types of HMOs.

Sandra is terrible at saving;therefore her insurance advisor suggested a term life insurance policy for her since it has a saving/investing aspect.

Life insurance is not meant to benefit you,its purpose is to protect others in the event of your death.

Practically all insurance contracts include a suicide clause stating that the insurance company won't pay off for suicide deaths that occur within the first five years of the contract.

One of the provisions of the Affordable Care Act is to prevent insurance companies from denying coverage to consumers with preexisting conditions.

It should be everyone's goal to become self-insured when it comes to Life insurance.Explain how and why this should be?

An HSA is a good form of health care coverage for young,healthy people who rarely get sick.

Statisticians who specialize in estimating the probability of death based on personal characteristics are called

Sylvester and JoAnn have both been laid off work during the last year and are now very poor.They found out that needy families can receive medical benefits through Medicaid.In addition,JoAnn found out that Medicaid can be used

Sonny Coltraine was told by a friend that universal life is the best policy.He will find that

Which of the types of cash-value policies are permanent insurance?

Long-term care insurance provides money to help pay for nursing home and home health care expenses.