Question 1

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

Question 2

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.

Question 3

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

Question 4

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.

Question 5

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.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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.

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

Question 9

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.

Question 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

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.

Question 14

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.

Question 15

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.

Question 16

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.

Question 17

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.

Question 18

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 19

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 20

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

Exam 9: Health and Disability Insurance

A policy that pays you back for actual expenses is called

Correct Answer
verified

Which of the following is INCORRECT about dread disease policies?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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?

Correct Answer
verified

COBRA stands for

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 9: Health and Disability Insurance

A policy that pays you back for actual expenses is called

Correct AnswerverifiedShow Answer

Which of the following is INCORRECT about dread disease policies?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

COBRA stands for

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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