Question 1

The Patient Protection and Affordable Care Act (ACA) requires insurance companies to adhere to the:

Accepted Answer

A)  pure community rating approach for individuals and small businesses. 
B)  adjusted community rating approach for individuals and small businesses. 
C)  same standards used by the Social Security Administration. 
D)  pure community rating approach for college communities. 
E)  cost-of-living adjustment (COL
A)  for individuals and small businesses. 
A)  pure community rating approach for individuals and small businesses. 
B)  adjusted community rating approach for individuals and small businesses. 
C)  same standards used by the Social Security Administration. 
D)  pure community rating approach for college communities. 
E)  cost-of-living adjustment (COL
A)  for individuals and small businesses. B

Question 2

Social Security disability income benefits are available only when someone is permanently unable to do any job.

Accepted Answer

A) True 
 B)False  False

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
Your health insurance policy stipulates that you will pay the first $500 of your health care expenses for the year. This is an example of a [ deductible | co-payment ].

Accepted Answer

a

Question 4

Government programs such as Medicare and Medicaid cover:

Accepted Answer

A)  more than half of the total cost of long-term care. 
B)  all the costs related to long-term care. 
C)  less than half of the total cost of long-term care. 
D)  the average cost of long-term care. 
E)  none of the costs related to long-term care. 
A)  more than half of the total cost of long-term care. 
B)  all the costs related to long-term care. 
C)  less than half of the total cost of long-term care. 
D)  the average cost of long-term care. 
E)  none of the costs related to long-term care.

Question 5

Which of the following changes would tend to increase the premium on a disability policy?

Accepted Answer

A)  A shorter elimination period 
B)  Use of the "any occupation" definition of disability instead of the "own occupation" definition 
C)  Decreasing the benefit level to 50% from 66% of prior earnings 
D)  Decreasing the payment period until age 65 to a maximum of 2 years 
E)  Mandatory disability insurance in which the employer pays the entire premium 
A)  A shorter elimination period 
B)  Use of the "any occupation" definition of disability instead of the "own occupation" definition 
C)  Decreasing the benefit level to 50% from 66% of prior earnings 
D)  Decreasing the payment period until age 65 to a maximum of 2 years 
E)  Mandatory disability insurance in which the employer pays the entire premium

Question 6

One drawback of long-term-care insurance is its:

Accepted Answer

A)  high annual premiums. 
B)  overlap with Medicare. 
C)  inability to cover custodial care. 
D)  short duration. 
E)  nonrenewability clause. 
A)  high annual premiums. 
B)  overlap with Medicare. 
C)  inability to cover custodial care. 
D)  short duration. 
E)  nonrenewability clause.

Question 7

Patrick's monthly take-home pay is $5,000. His net worth is $125,000. He estimated that he would receive Social Security benefits worth $1,000 and company disability benefits worth $2,000 if he becomes disabled. The additional amount of disability benefits that he needs to arrange for is:

Accepted Answer

A)  $3,000. 
B)  $2,000. 
C)  $5,000. 
D)  $6,000. 
E)  $7,000. 
A)  $3,000. 
B)  $2,000. 
C)  $5,000. 
D)  $6,000. 
E)  $7,000.

Question 8

Long-term-care insurance provides protection against the cost of extended hospital stays.

Accepted Answer

A) True 
 B)False

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
The Patient Protection and Affordable Care Act (ACA) requires [ insurers to spend at least 50% of premiums on claims | all health insurance plans to cover pre-existing conditions ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 10

An individual can collect multiple payments for the same illness or accident unless his or her health insurance policy includes a:

Accepted Answer

A)  pre-existing condition clause. 
B)  guaranteed renewability provision. 
C)  coordination of benefits provision. 
D)  co-insurance clause. 
E)  stop-loss provision. 
A)  pre-existing condition clause. 
B)  guaranteed renewability provision. 
C)  coordination of benefits provision. 
D)  co-insurance clause. 
E)  stop-loss provision.

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
About [ 21% | 39% ] of those under the age of 35 do not have health insurance.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 12

A _____ is a hybrid form of health maintenance organization (HMO) that allows members to go outside of the HMO network for care.

Accepted Answer

A)  point-of-service (POS) plan 
B)  Blue Cross/Blue Shield plan 
C)  fee-for-service plan 
D)  traditional indemnity plan 
E)  group HMO plan 
A)  point-of-service (POS) plan 
B)  Blue Cross/Blue Shield plan 
C)  fee-for-service plan 
D)  traditional indemnity plan 
E)  group HMO plan

Question 13

Generally, group insurance plans cost less than individual policies.

Accepted Answer

A) True 
 B)False

Question 14

The community rating approach to health insurance premium pricing:

Accepted Answer

A)  advocates offering the Social Security Medicare program to all individuals irrespective of their age. 
B)  favors the government's contribution to the health savings account (HS
A) . 
C)  prohibits insurance companies from varying rates based on health status or claim history. 
D)  considers only medical insurance coverage from a private insurance company. 
E)  offers consumer-directed health plans that go one step beyond a flexible-benefit plan. 
A)  advocates offering the Social Security Medicare program to all individuals irrespective of their age. 
B)  favors the government's contribution to the health savings account (HS
A) . 
C)  prohibits insurance companies from varying rates based on health status or claim history. 
D)  considers only medical insurance coverage from a private insurance company. 
E)  offers consumer-directed health plans that go one step beyond a flexible-benefit plan.

Question 15

People under the age of 65 are covered by the Medicare health insurance plan if:

Accepted Answer

A)  they agree to pay a negotiated fee for medical services. 
B)  they have been denied health insurance because of a pre-existing condition. 
C)  they volunteer to pay premiums. 
D)  they are injured on the job or become ill through work-related causes. 
E)  they receive monthly Social Security disability benefits. 
A)  they agree to pay a negotiated fee for medical services. 
B)  they have been denied health insurance because of a pre-existing condition. 
C)  they volunteer to pay premiums. 
D)  they are injured on the job or become ill through work-related causes. 
E)  they receive monthly Social Security disability benefits.

Question 16

Advances in medical technology, drug prescriptions, and treatments have substantially reduced the cost of health care in recent decades.

Accepted Answer

A) True 
 B)False

Question 17

The purchasing power of income from a long-term disability policy is protected by:

Accepted Answer

A)  the Patient Protection and Affordable Care Act (AC
A) . 
B)  the cost-of-living adjustment (COL
A)  provision. 
C)  Medicare benefits. 
D)  Social Security income. 
E)  the health reimbursement account (HR
A) . 
A)  the Patient Protection and Affordable Care Act (AC
A) . 
B)  the cost-of-living adjustment (COL
A)  provision. 
C)  Medicare benefits. 
D)  Social Security income. 
E)  the health reimbursement account (HR
A) .

Question 18

Michael's estimated current monthly take-home pay is $4,500. His total existing monthly disability benefits are $2,950. Michael's estimated monthly disability benefits needed are:

Accepted Answer

A)  $1,550. 
B)  $550. 
C)  $2,950. 
D)  $7,450. 
E)  $4,500. 
A)  $1,550. 
B)  $550. 
C)  $2,950. 
D)  $7,450. 
E)  $4,500.

Question 19

Funds for Medicare benefits come from:

Accepted Answer

A)  monthly payments by users directly to the health care provider. 
B)  the co-payment for health care services by the insured. 
C)  the premiums paid by the employers for the employees. 
D)  Social Security taxes paid by covered workers and their employers. 
E)  the health care provider. 
A)  monthly payments by users directly to the health care provider. 
B)  the co-payment for health care services by the insured. 
C)  the premiums paid by the employers for the employees. 
D)  Social Security taxes paid by covered workers and their employers. 
E)  the health care provider.

Question 20

Medicare and Medicaid are administered by hospitals and physicians.

Accepted Answer

A) True 
 B)False

The Patient Protection and Affordable Care Act (ACA) requires insurance companies to adhere to the:

Social Security disability income benefits are available only when someone is permanently unable to do any job.

Government programs such as Medicare and Medicaid cover:

Which of the following changes would tend to increase the premium on a disability policy?

One drawback of long-term-care insurance is its:

Patrick's monthly take-home pay is $5,000. His net worth is $125,000. He estimated that he would receive Social Security benefits worth $1,000 and company disability benefits worth $2,000 if he becomes disabled. The additional amount of disability benefits that he needs to arrange for is:

Long-term-care insurance provides protection against the cost of extended hospital stays.

An individual can collect multiple payments for the same illness or accident unless his or her health insurance policy includes a:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. About [ 21% | 39% ] of those under the age of 35 do not have health insurance.

A _____ is a hybrid form of health maintenance organization (HMO) that allows members to go outside of the HMO network for care.

Generally, group insurance plans cost less than individual policies.

The community rating approach to health insurance premium pricing:

People under the age of 65 are covered by the Medicare health insurance plan if:

Advances in medical technology, drug prescriptions, and treatments have substantially reduced the cost of health care in recent decades.

The purchasing power of income from a long-term disability policy is protected by:

Michael's estimated current monthly take-home pay is $4,500. His total existing monthly disability benefits are $2,950. Michael's estimated monthly disability benefits needed are:

Funds for Medicare benefits come from:

Medicare and Medicaid are administered by hospitals and physicians.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 9: Insuring Your Health

The Patient Protection and Affordable Care Act (ACA) requires insurance companies to adhere to the:

Social Security disability income benefits are available only when someone is permanently unable to do any job.

Government programs such as Medicare and Medicaid cover:

Which of the following changes would tend to increase the premium on a disability policy?

One drawback of long-term-care insurance is its:

Patrick's monthly take-home pay is $5,000. His net worth is $125,000. He estimated that he would receive Social Security benefits worth $1,000 and company disability benefits worth $2,000 if he becomes disabled. The additional amount of disability benefits that he needs to arrange for is:

Long-term-care insurance provides protection against the cost of extended hospital stays.

An individual can collect multiple payments for the same illness or accident unless his or her health insurance policy includes a:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. About [ 21% | 39% ] of those under the age of 35 do not have health insurance.

A _____ is a hybrid form of health maintenance organization (HMO) that allows members to go outside of the HMO network for care.

Generally, group insurance plans cost less than individual policies.

The community rating approach to health insurance premium pricing:

People under the age of 65 are covered by the Medicare health insurance plan if:

Advances in medical technology, drug prescriptions, and treatments have substantially reduced the cost of health care in recent decades.

The purchasing power of income from a long-term disability policy is protected by:

Michael's estimated current monthly take-home pay is $4,500. His total existing monthly disability benefits are $2,950. Michael's estimated monthly disability benefits needed are:

Funds for Medicare benefits come from:

Medicare and Medicaid are administered by hospitals and physicians.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds and Real Estate

Planning for Retirement

Preserving Your Estate

Filters