Question 1

Disability income insurance policies are required to provide benefits for disabled policyholders until age 65.

Accepted Answer

A) True 
 B)False

Question 2

Health care costs have decreased because of aging baby boomers using fewer health care services.

Accepted Answer

A) True 
 B)False

Question 3

The Health Insurance and the Patient Protection and Affordable Care Act of 2010 requires health insurance companies to submit justification for all requested premium increases.

Accepted Answer

A) True 
 B)False  True

Question 4

The Health Insurance Portability and Accountability Act of 1996

Accepted Answer

A)   Sets federal standards to ensure that workers do not lose their health insurance if they change jobs.
B)   Sets state standards to ensure that workers do not lose their health insurance if they change jobs.
C)   Applies to individual health insurance policies.
D)   Prevents employees from moving from one group health plan to another without a lapse in coverage.
E)   Is a replacement for the Consolidated Omnibus Budget Reconciliation Act of 1986.

Question 5

A PPO is another name for an HMO.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT correct regarding why Health Care costs so much?

Accepted Answer

A)   The use of sophisticated and expensive technologies.
B)   Victims of accidents and crimes require fewer emergency medical services than in the past.
C)   Regulations that shift costs instead of reducing costs.
D)   Duplication of tests.
E)   Limited competition and restrictive work rules in the health care delivery system.

Question 7

What is the primary purpose of medical expense insurance?

Accepted Answer

A)   Protect against death expenses.
B)   Provide payments to make up for some income of a person who cannot work as a result of injury or illness.
C)   Pay actual medical costs for illness or injury.
D)   Pay a salary if an employee is disabled.
E)   Repay loans if an employee cannot work because of illness or injury.

Question 8

Rising health costs are due to all of the following except

Accepted Answer

A)   Costs of prescription drugs.
B)   The growing number of uninsured.
C)   Advancements in medical technology.
D)   Baby boomers using fewer health care services.
E)   The overweight population.

Question 9

Jack needs comprehensive medical coverage. However, his income is very low. What plan should he investigate?

Accepted Answer

A)   Medicare Part A
B)   Medicare Part B
C)   Medicaid
D)   Medigap
E)   Medicare Part C

Question 10

Workers are considered disabled if they have a physical or mental condition that prevents them from working and that is expected to last for at least 12 months or to result in death.

Accepted Answer

A) True 
 B)False

Question 11

Some policies consider the average fee for a service in a particular geographical area. They then use that amount to set a minimum payment for policyholders.

Accepted Answer

A) True 
 B)False

Question 12

Jacob is concerned that his out-of-pocket health care expenses will be quite high, so he is considering adding contributions to a tax-free account that he can use with his high-deductible policy to cover catastrophic expenses. What kind of plan does he have?

Accepted Answer

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

Question 13

Fran is interested in purchasing a major medical policy that limits the total out-of-pocket amount that she will have to pay. She should consider a

Accepted Answer

A)   Copay.
B)   Coinsurance.
C)   Stop-loss provision.
D)   Hospital indemnity policy.
E)   Dread disease policy.

Question 14

The financial problems caused by death are greater than those caused by disability.

Accepted Answer

A) True 
 B)False

Question 15

The type of health insurance coverage that pays for some or all of the daily costs of room and board during a hospital stay is

Accepted Answer

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

Question 16

If you or any of your dependents do not have minimum essential coverage and you do not have an exemption, then you will have to make an individual shared responsibility payment on your tax return equal to $95 per adult and $47.50 per child in your family (up to a maximum of $500 per family).

Accepted Answer

A) True 
 B)False

Question 17

The period before you can receive benefits in a disability plan is called the probationary period.

Accepted Answer

A) True 
 B)False

Question 18

You may be exempt from the requirement to maintain minimum essential coverage if you have no affordable coverage options, because the amount you must pay for the annual premium is more than 8% of your household income.

Accepted Answer

A) True 
 B)False

Question 19

Medicare (Part A)  covers

Accepted Answer

A)   Dental care.
B)   Routine checkups.
C)   Most immunizations.
D)   Inpatient hospital care.
E)   None of these are covered.

Question 20

Medicare is offered to certain low-income individuals and families.

Accepted Answer

A) True 
 B)False  False

Exam 9: Health and Disability Insurance

Disability income insurance policies are required to provide benefits for disabled policyholders until age 65.

Correct AnswerverifiedShow Answer

Health care costs have decreased because of aging baby boomers using fewer health care services.

Correct AnswerverifiedShow Answer

The Health Insurance and the Patient Protection and Affordable Care Act of 2010 requires health insurance companies to submit justification for all requested premium increases.

Correct AnswerverifiedTrue

The Health Insurance Portability and Accountability Act of 1996

Correct AnswerverifiedShow Answer

A PPO is another name for an HMO.

Correct AnswerverifiedShow Answer

Which of the following is NOT correct regarding why Health Care costs so much?

Correct AnswerverifiedShow Answer

What is the primary purpose of medical expense insurance?

Correct AnswerverifiedShow Answer

Rising health costs are due to all of the following except

Correct AnswerverifiedShow Answer

Jack needs comprehensive medical coverage. However, his income is very low. What plan should he investigate?

Correct AnswerverifiedShow Answer

Workers are considered disabled if they have a physical or mental condition that prevents them from working and that is expected to last for at least 12 months or to result in death.

Correct AnswerverifiedShow Answer

Some policies consider the average fee for a service in a particular geographical area. They then use that amount to set a minimum payment for policyholders.

Correct AnswerverifiedShow Answer

Jacob is concerned that his out-of-pocket health care expenses will be quite high, so he is considering adding contributions to a tax-free account that he can use with his high-deductible policy to cover catastrophic expenses. What kind of plan does he have?

Correct AnswerverifiedC

Fran is interested in purchasing a major medical policy that limits the total out-of-pocket amount that she will have to pay. She should consider a

Correct AnswerverifiedShow Answer

The financial problems caused by death are greater than those caused by disability.

Correct AnswerverifiedShow Answer

The type of health insurance coverage that pays for some or all of the daily costs of room and board during a hospital stay is

Correct AnswerverifiedShow Answer

If you or any of your dependents do not have minimum essential coverage and you do not have an exemption, then you will have to make an individual shared responsibility payment on your tax return equal to $95 per adult and $47.50 per child in your family (up to a maximum of $500 per family).

Correct AnswerverifiedShow Answer

The period before you can receive benefits in a disability plan is called the probationary period.

Correct AnswerverifiedShow Answer

You may be exempt from the requirement to maintain minimum essential coverage if you have no affordable coverage options, because the amount you must pay for the annual premium is more than 8% of your household income.

Correct AnswerverifiedShow Answer

Medicare (Part A) covers

Correct AnswerverifiedShow Answer

Medicare is offered to certain low-income individuals and families.

Correct AnswerverifiedFalse

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True

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C

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False