Question 1

When the Affordable Care Act is fully implemented,100 percent of Americans will have health care insurance.

Accepted Answer

While the Affordable Care Act aimed to increase access to affordable health care for all Americans, it did not require 100 percent of individuals to have health insurance. However, the individual mandate, which required individuals to have health insurance or pay a penalty, helped to increase the percentage of insured individuals in the United States.

Question 2

The beneficiary is the individual designated by the owner of the life insurance policy to receive the insurance policy's proceeds upon the death of the insured.

Accepted Answer

This is a correct statement. The beneficiary is the person named by the policy owner to receive the death benefit.

Question 3

In dealing with risk,one can either avoid it,manage it,or transfer it for a fee.

Accepted Answer

This statement is true. One can avoid risk by not engaging in an activity that has potential negative consequences, manage risk by taking steps to reduce the likelihood or impact of negative consequences, or transfer risk to someone else through insurance or other means for a fee.

Question 4

What are some good reasons for a young,healthy,single person to purchase life insurance?

Accepted Answer

The answer of What are some good reasons for a...

Question 5

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

Accepted Answer

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

Question 6

Sharing the financial consequences associated with risk in the insurance industry is sometimes called

Accepted Answer

Risk pooling is the process of gathering premiums from a large group of people who face similar risks and then using that money to pay out claims to those who suffer losses. This allows the financial consequences of risk to be shared among a larger group, which can help to reduce the burden on any one individual.

Question 7

Life insurance and health insurance are designed to transfer the catastrophic risk you can't afford to keep onto the insurance companies.

Accepted Answer

Life insurance and health insurance are typically purchased to protect against unforeseen events that may be financially devastating, such as serious illnesses, disabilities, or death. By paying premiums to an insurance company, individuals transfer the risk of these events onto the insurer, who will pay out benefits if and when the policyholder experiences a covered event. This helps to provide financial security and stability to individuals and their families in the face of life's uncertainties.

Question 8

What is the main purpose of life insurance?

Accepted Answer

The answer of What is the main purpose of life...

Question 9

Wayne and Sarah are trying to manage the risk they face in life a best as they can.They are following Principle 7 which states

Accepted Answer

Principle 7, "protect yourself against major catastrophes," emphasizes the importance of safeguarding against significant, potentially devastating risks that could have a profound impact on one's life or financial stability.

Question 10

Actuaries are statisticians who specialize in estimating the probability of death based on personal characteristics,such as your age and general health,as well as lifestyle specifics such as whether or not you exercise.

Accepted Answer

Actuaries do estimate the probability of death based on personal characteristics and lifestyle specifics.

Question 11

Andrew and Alice have health issues that may be passed on to their children.When the children are born would they be wise to obtain life insurance immediately on the infants prior to any of the medical conditions arising?

Accepted Answer

It would be wise to obtain life insurance on the infants immediately as they are not likely to have to pass a physical exam, and any medical conditions that may arise later may make it more difficult or expensive to obtain insurance. Additionally, securing insurance at a young age may lock in lower premiums. Waiting until the child is an adult may result in them being uninsurable or facing significantly higher insurance premiums.

Question 12

An insurance policy is a contract with an insurance company that spells out what losses are covered,what the policy costs,and who receives the payment if a loss occurs.

Accepted Answer

This statement accurately describes the purpose and contents of an insurance policy that is agreed upon between the insurer and the policyholder.

Question 13

Life insurance may not be necessary if

Accepted Answer

Life insurance is primarily to provide financial support to dependents in the event of one's death. If you don't have dependents, are part of a double-income couple without children, aren't employed (and thus may not contribute financially), or are retired (presumably with savings and no dependent children), life insurance may not be necessary.

Question 14

One of the reasons insurance is so expensive is due to the expense of developing,testing and verifying new drugs.This cost is passed on to consumers.

Accepted Answer

Developing, testing and verifying new drugs is a costly and time-consuming process, and the expenses incurred by pharmaceutical companies are ultimately reflected in the high cost of insurance and healthcare for consumers.

Question 15

The Patient Protection and Affordable Care Act was signed into law in 2010;however many of its aspects do not go into effect until 2020.

Accepted Answer

The statement is false. Many aspects of the Patient Protection and Affordable Care Act (also known as Obamacare) have already gone into effect since its signing in 2010. Some major provisions, such as the individual mandate, Medicaid expansion, and health insurance exchanges, took effect in 2014. Other provisions, such as the Cadillac tax on high-cost health plans and the employer mandate, have been delayed or repealed.

Question 16

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

Accepted Answer

Life insurance provides a financial safety net for your loved ones in case of your unexpected death. It is not a personal benefit but rather a tool to ensure that your family is provided for in the event of your passing.

Question 17

All life insurance policies should have a contingent beneficiary designated.

Accepted Answer

It is recommended that all life insurance policies have a contingent beneficiary designated in case the primary beneficiary predeceases the insured or is unable to receive the benefits for some other reason. This ensures that the benefits are distributed according to the insured's wishes in the event of their death.

Question 18

Why is being the policy owner so important?

Accepted Answer

The answer of Why is being the policy owner so...

Question 19

The individual designated by the owner of the life insurance policy to receive the policy's proceeds upon the death of the insured is called the

Accepted Answer

The beneficiary is the person or entity (such as a trust or charity) designated to receive the life insurance policy's proceeds upon the death of the insured. The policy holder is the person who owns the policy and pays the premiums. The insured is the person whose life is insured by the policy. An actuary is a professional who analyzes and manages the financial impact of risk and uncertainty.

Question 20

Currently only 10% of Americans receive some type of government health care entitlements such as Medicaid or Medicare.

Accepted Answer

According to data from the Centers for Medicare and Medicaid Services, as of 2020, around 34% of Americans received government health care entitlements through Medicaid, Medicare, or the Children's Health Insurance Program (CHIP).

Quiz 9: Life and Health Insurance