Question 1

Disability income insurance will provide income to a disabled or ill person
A) without a waiting period.
B) with unlimited funds for years.
C) with a waiting period before income is received.
D) with payments made to the recipient for up to age 70.
E) none of the above.

Accepted Answer

Disability income insurance typically has a waiting period before benefits are paid out, which can range from 30 days to several months. This allows the insurance company to verify the disability and prevent fraud. Unlimited funds for years and payments made up to age 70 are not typical features of disability income insurance.

Question 2

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 average age of the American population is [decreasing | increasing].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

Joe has a disability income policy that pays a monthly benefit of $1,200.Joe has been disabled for 30 days,but he only received a check in the amount of $600 from his disability insurance.What is probably the reason that he only received $600?
A) The policy has a deductible of $600.
B) The elimination period is 15 days.
C) The policy has a 50% coinsurance clause.
D) Joe is considered to be only 50% disabled.
E) Joe has only owned the policy for 6 months.

Accepted Answer

The most likely reason that he only received $600 is because the policy has an elimination period of 15 days. The elimination period is the time period between the onset of disability and the beginning of benefit payments, during which no benefits are paid. In this case, Joe has only been disabled for 30 days, but the policy has an elimination period of 15 days, so he would only receive a benefit for the 15 days after the elimination period ends.

Question 4

Medicare Advantage policies require payment from the policyholder in the form of a
A) Deductible
B) Co-insurance
C) Copayment
D) Excess charge
E) a and b

Accepted Answer

Medicare Advantage policies require the policyholder to pay for copayments, which are fixed amounts paid for healthcare services at the time of the visit. Deductibles and coinsurance may also apply, but these are not required payment forms for all Medicare Advantage policies. Excess charges may also occur if a healthcare provider charges more than what is allowed by Medicare, but this is typically not a required payment form for Medicare Advantage policies. Therefore, the correct choice is C) Copayment.

Question 5

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.
-Traditional indemnity policies reimburse the insured based on the [amount charged | usual,customary,and reasonable charges] for the medical services received.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

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.
-One difference between health maintenance organizations (HMOs)and individual practice associations (IPAs)is that [HMOs cost much less | IPAs do not provide services from a central location].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

The U.S.spends about ___% of our economic output on health care.
A) 5
B) 9
C) 13
D) 17
E) 20

Accepted Answer

The U.S. spends about 17% of our economic output on health care.

Question 8

Starting in 2014,the Affordable Care Act requires insurance companies to set premiums based on all the following except
A) Family size
B) Where you live
C) Tobacco use
D) Gender
E) Age

Accepted Answer

The Affordable Care Act prohibits insurance companies from setting premiums based on gender.

Question 9

The Affordable Care Act's expenditures are to be financed by all of the following except
A) Higher medicare taxes
B) Excise tax on certain "Cadillac" policies
C) Higher income taxes
D) Fees on insurers
E) Anticipated cost savings

Accepted Answer

The answer of The Affordable Care Act's expenditures are to...

Question 10

Medicare Advantage supplemental benefits include all of the following except
A) Vision
B) Dental
C) General checkups
D) Hospitalization
E) Wellness programs

Accepted Answer

Hospitalization is not a supplemental benefit but rather a core benefit of Medicare Advantage plans. Supplemental benefits are additional benefits that can be offered by Medicare Advantage plans, such as vision, dental, general checkups, and wellness programs.

Question 11

Suppose Janet,a skilled neuro-surgeon,became unable to perform surgery because of severe arthritis.Which of the following is NOT true?
A) If Janet has a disability policy with an "own occupation" definition of disability, she will probably collect some benefits.
B) If the policy contains an "own occupation" definition of disability, the insurer will provide coverage only if Janet would not be able to perform another type of job such as teaching or consulting.
C) If the policy contains an "any occupation for which reasonable suited" definition of disability, the insurer will attempt to determine if there is another job for which Janet is suited and is still able to perform.
D) A policy with an "own occupation" definition is generally more expensive than a policy with an "any occupation for which reasonable suited" definition of disability.

Accepted Answer

This statement is not true because if the policy contains an "own occupation" definition of disability, the insurer will provide coverage even if Janet can perform another type of job such as teaching or consulting. The "own occupation" definition focuses on whether the insured is able to perform their specific occupation, rather than any other job for which they may be suited.

Question 12

Disability income policies usually have ____ that is a time delay from the date of the issuance of the policy until benefit privileges are activated.
A) waiting periods
B) probationary periods
C) elimination periods
D) internal limit periods
E) outer limits

Accepted Answer

The answer of Disability income policies usually have ____ that...

Question 13

Which of the following programs is a public assistance program that provides health insurance benefits only to those who are unable to pay for healthcare?
A) Medicare
B) Medicaid
C) Blue Cross/Blue Shield
D) Social Security disability benefits
E) worker's compensation

Accepted Answer

Medicaid is a public assistance program that provides health insurance benefits only to those who are unable to pay for healthcare. Medicare is a health insurance program for individuals who are 65 years or older or have certain disabilities. Blue Cross/Blue Shield is a private insurance carrier that provides health insurance. Social Security disability benefits and worker's compensation are also different programs that provide benefits in specific situations.

Question 14

Which of the following is(are)characteristic of Social Security disability income benefits?
A) 1-year waiting period
B) "own occ" definition of disability
C) disability expected to last 1 year, or be fatal
D) a and b
E) a, b, and d

Accepted Answer

Social Security disability income benefits require a disability that is expected to last at least one year or result in death. There is no waiting period and the definition of disability used by Social Security is "any occupation" rather than "own occupation." Therefore, options A and B are incorrect, while D and E are incorrect because they include A and/or B.

Question 15

The medicare coinsurance payment is usually
A) 0%
B) 10%
C) 20%
D) 50%
E) None of the above

Accepted Answer

The Medicare coinsurance payment is typically 20% of the Medicare-approved amount for the service or item received. This means that the individual will be responsible for paying 20% of the cost out of pocket, while Medicare will cover the remaining 80%.

Question 16

When trying to determine your disability income needs,you should consider available sick leave,income needs,and
A) social security benefits.
B) surgical expense protection.
C) Medicare.
D) life insurance.
E) income tax bracket.

Accepted Answer

Social security benefits can provide additional disability income, which should be factored into your disability income needs. It is important to know what benefits you are entitled to so that you can make an informed decision about your disability income insurance coverage.

Question 17

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.
-One complaint about HMOs in the past,as compared to traditional indemnity plans,is that [the cost was expensive | the care was not available for major illnesses | members couldn't always choose their physicians].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

In order to qualify for disability insurance under social security,a person must be
A) unable to carry out the duties of the current job.
B) unable to carry out the duties of any job.
C) ill for at least two years.
D) willing to undergo rehabilitation.
E) none of these

Accepted Answer

To qualify for disability insurance under social security, a person must be unable to carry out the duties of any job, not just their current job. They must have a disability that has lasted, or is expected to last, for at least one year, and is severe enough to prevent them from performing substantial gainful activity. Rehabilitation may be offered, but it is not a requirement for qualification.

Question 19

Most people do not need protection against
A) the loss of income because of time spent away from work.
B) a specific dread disease.
C) medical and rehabilitation expenses.
D) nursing home costs.
E) in hospital services.

Accepted Answer

The answer of Most people do not need protection against
A)...

Question 20

About ___ million Americans lack health insurance.
A) 10
B) 30
C) 50
D) 75
E) 100

Accepted Answer

According to a 2019 census report, approximately 30 million Americans lacked health insurance.

Quiz 9: Insuring Your Health

Disability income insurance will provide income to a disabled or ill person

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 average age of the American population is [decreasing | increasing].

Joe has a disability income policy that pays a monthly benefit of $1,200.Joe has been disabled for 30 days,but he only received a check in the amount of $600 from his disability insurance.What is probably the reason that he only received $600?

Medicare Advantage policies require payment from the policyholder in the form of a

The U.S.spends about ___% of our economic output on health care.

Starting in 2014,the Affordable Care Act requires insurance companies to set premiums based on all the following except

The Affordable Care Act's expenditures are to be financed by all of the following except

Medicare Advantage supplemental benefits include all of the following except

Suppose Janet,a skilled neuro-surgeon,became unable to perform surgery because of severe arthritis.Which of the following is NOT true?

Disability income policies usually have ____ that is a time delay from the date of the issuance of the policy until benefit privileges are activated.

Which of the following programs is a public assistance program that provides health insurance benefits only to those who are unable to pay for healthcare?

Which of the following is(are)characteristic of Social Security disability income benefits? A) 1-year waiting period B) "own occ" definition of disability C) disability expected to last 1 year, or be fatal D) a and b E) a, b, and d

The medicare coinsurance payment is usually

When trying to determine your disability income needs,you should consider available sick leave,income needs,and

In order to qualify for disability insurance under social security,a person must be

Most people do not need protection against

About ___ million Americans lack health insurance.