finance chapter 10 -- chapter 12

long

-term care insurance provides day-in day-out care for extended illness or disability.

80

A "good" health insurance plan pays at least Blank______ percent of out-of-hospital expenses once a yearly deductible for the individual and family have been met.

financial responsibility law

A ______ is state legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident.

double indemnity

A benefit under which the company pays twice the face value of the policy if the insured's death results from an accident is called a

basic health insurance

A combination of hospital expense insurance, physician expense insurance, and surgical expense insurance is called

risk shifting risk assumption

A deductible is a combination of which of the following two risk management methods?

per loss

A deductible is a set amount that the policyholder must pay Blank______ on an insurance policy.

Blank 1: modifies, changes, amends, alters, or adjusts

A document attached to a policy that its coverage is called a rider.

rider

A document attached to a policy that modifies its coverage is called a(n)

can only work part-time at your regular job are unable to work your regular job

A good disability plan would pay you when you

a provision so the policyholder will pay no more than $6,000 out of pocket a year at least $1 million lifetime maximum for each family member

A good health insurance provides which of the following?

Blank 1: large, big, or high Blank 2: medical, health, or physical

A group insurance plan insures a(n) number of people under the terms of a single policy without requiring examinations.

PPO

A group of doctors and hospitals that agree to provide health care to members at prearranged fees is called

health maintenance organization (HMO).

A health insurance plan that provides a wide range of health care services for a fixed prepaid monthly premium is called a:

fixed prepaid

A health maintenance organization (HMO) is a health insurance plan that provides a wide range of health care services for a(n) ______ monthly premium.

Blank 1: inventory

A household is a list or other documentation of personal belongings, with purchase dates and cost information.

Blank 1: objectives, needs, or requirements

A life insurance policy is valuable only if it meets your

beneficiary

A person designated to receive something, such as life insurance proceeds, from the insured is called a(n

whole life policy

A plan where the policyholder pays the same premium for as long as they live is called a(n)

decreasing term insurance policy

A policy that pays the beneficiary less as time passes is:

Blank 1: unable, disable, or disabled

A poor disability plan pays you only when you are to work at any job.

Blank 1: prearranged, predetermined, set, fixed, given, approved, flat, or negotiated

A preferred provider organization (PPO) is a group of doctors and hospitals that agree to provide health care to members at fees that are slightly higher than those for health maintenance organizations.

stop-loss.

A provision in major medical policies, also called an out-of-pocket limit provision, under which an insured pays a certain amount, after which the insurance company pays 100% of the remaining covered expenses, is called a (found in discussion of types of medical coverage):

incontestability clause

A provision stating that the insurer cannot dispute the validity of a policy after a specific period is called a(n)

copayment

A provision under which the insured pays a flat dollar amount each time a covered medical service is received is called:

Blank 1: one or 1

A special form of the limited payment plan is the single-premium policy in which the policyholder pays only very large premium payment.

Blank 1: death Blank 2: maturity or future

A traditional life insurance policy pays the beneficiaries of the policyholder at the time of , whereas an endowment policy pays the insured if he or she is alive on the date named in the policy.

universal life

A whole life policy that combines term insurance and investment elements is called

Blank 1: indemnity Blank 2: reimbursement

A(n) policy provides specified benefits regardless of whether the actual expenses are greater or less than the benefits. A(n) policy provides benefits based on the actual expense.

Blank 1: exclusive or epo

A(n) provider organization is one that renders medical care from only affiliated health care providers and will not reimburse for charges from nonaffiliated health care providers.

living in a temporary location while your home is being repaired

Additional living expense coverage pays for the cost of

enrolling beneficiaries in a health plan. filing reimbursement claims. checking eligibility. paying health insurance premiums.

Administrative costs in the United States are much higher than those in other nations due to activities such as:

paying health insurance premiums. filing reimbursement claims. enrolling beneficiaries in a health plan. checking eligibility.

Administrative costs in the United States are much higher than those in other nations due to activities such as:

eligibility

Age, marital status, and dependency requirements are usually specified in the _____ provision of an insurance policy.

Blank 1: income or payments

An annuity is a contract that provides regular for as long as a person lives.

upon death of the insured

An endowment life insurance policy pays the policyholder money at the maturity date, whereas a traditional policy pays the beneficiaries

Blank 1: validity or terms Blank 2: period, amount, or date

An incontestability clause states that the insurer cannot dispute the of a policy after a specific of time. These are one-word answers.

be licensed in your state

An insurance company, in order to get your business needs, must:

Blank 1: personal

An umbrella policy supplements your basic liability coverage and provides protection for injury claims, such as libel, slander, defamation of character, and invasion of property.

Blank 1: superior Blank 2: excellent

As a rule, you should deal with insurance agencies with a or rating.

Blank 1: increase or raise

As construction costs rise, you should the amount of insurance coverage.

property

Automobile insurance covers and personal damage (bodily injury) caused by the policyholder's car.

Blank 1: home, property, homeowners, homeowner's, or house

Banks require home mortgage borrowers to have insurance.

surgical expense insurance. hospital expense insurance. physician expense insurance.

Basic health insurance coverage is a combination of:

substance abuse mental health emergency care

Basic health services for an HMO include inpatient and outpatient services such as (found in the discussion of health maintenance organizations)

Blank 1: hospital, medical, or health

Blue Cross is an independent, nonprofit membership corporation that provides protection against the cost of care.

health care costs

By exercising, not smoking, getting rest, and driving carefully, individuals can greatly reduce their

Blank 1: received, receives, or gets

Cash value is the amount the policyholder after giving up a life insurance policy.

Blank 1: long or extended

Cash-value policies are good for people who must be forced to save and for those who plan to keep the policy for the term.

must be forced to save. plan to keep the policy long term.

Cash-value policies are good for people who:

plan to keep the policy long term. must be forced to save.

Cash-value policies are good for people who:

Blank 1: avoidance

Choosing never to sky-dive is an example of risk

avoidance

Choosing never to sky-dive is an example of risk

policyholder and the insurer

Coinsurance is a provision under which the ______ share the covered losses

Blank 1: one or 1

Coordination of benefits (COB) is a method of integrating the benefits payable under more than health insurance plan.

True

Copayment is the provision under which the insured pays a flat dollar amount each time a covered medical service is received.

lost wages for time away from work for the surviving spouse

Costs not associated with replacing the services of a nonworking spouse include:

Blank 1: assumption or taking

Deciding not to buy collision insurance on your car is risk

Blank 1: less

Decreasing term insurance policy pays the beneficiary as time passes

Blank 1: less

Decreasing term insurance policy pays the beneficiary as time passes.

hazard

Defective house wiring is an example of a(n) that increases the chances of fire.

60% to 70% of gross pay when added to other income.

Disability benefits should equal:

worker's compensation

Disability income insurance may also be provided by your employer, Social Security, or

Blank 1: twice or double

Double indemnity (accidental death) is a benefit under which the company pays the face value of a policy if the insured's death results from an accident.

installing smoke alarms wearing seat belts in a car

Examples of the risk reduction technique of risk management include

higher

Expensive cars usually carry ______ premiums.

Blank 1: complicated, complex, difficult, extensive, or costly

Expensive replacement parts and repairs due to body style contribute to higher automobile premium rates.

Blank 1: rural, country, or suburban

Fewer accidents and less vandalism occur in areas than in urban cities.

pretax

Flexible spending accounts allow you to contribute Blank______ dollars to an account managed by your employer.

Blank 1: term or temporary Blank 2: whole or permanent

For fairly young people, life insurance is less expensive than life insurance. These are one-word answers.

best value

For most consumers, term life insurance is considered to be the

higher

For surgical expense insurance, larger maximum fees allowed for each surgery will cause the premiums to be

Blank 1: job or work

For the nonworking spouse method, extra costs not considered include the surviving spouse's time away from their to care for the family.

a single policy

Group insurance plans insure a large number of people under the terms of

Blank 1: emergency

HMO basic health services include inpatient, outpatient, maternity, mental health, substance abuse rehabilitation, and care.

loss

Hazards increase the likelihood of a(n) through a peril.

disability accident illness

Health insurance is one way people protect themselves against economic losses due to

True

Health insurance is one way people protect themselves against economic losses due to illness, accident, or disability.

Blank 1: protection, coverage, benefits, money, or security

Health insurance provides to alleviate the financial burden individuals suffer from illness or injury.

financial risks

Home insurance covers the policyholder's place of residence and its associated ______, such as damage to personal property and injuries to others.

Blank 1: room

Hospital expense insurance pays part or all of hospital bills for , board, and other charges.

Blank 1: small, young, little, smaller, or younger

Households with children have the greatest need for life insurance.

2

How many parts are there in a typical insurance application?

Avoid smoking. Rest. Eat a balanced diet to keep weight under control.

Identify ways in which you can personally reduce your health care costs.

Blank 1: DINK

If a spouse has an unstable job or poor health, then the method may not be the best option. (Answer with the acronym.)

upward

If anyone suffers from poor health or there are more than two children under the age of 13, the nonworking spouse method should be adjusted

where the policy is kept

If you are the beneficiary of a policy, it is most important to know

is renewable.

If you wish to continue your existing term life insurance coverage, the easiest method is if your policy:

Blank 1: assets

If your family is not "typical", then the family need method may be the best alternative. It considers your social security and liquid when determining the amount of coverage needed.

$75,000

If your home is insured for $100,000, and your homeowner's policy covers up to 75% for household belongings, how much coverage do you have for household belongings?

death

In order for your beneficiary to redeem the policy, they will need to have your ______ certificate and your insurance policy.

Blank 1: cash or debit

In order to contain health care costs, physicians are encouraging consumers to pay with for routine medical care and lab services

Blank 1: cash or debit

In order to contain health care costs, physicians are encouraging consumers to pay with for routine medical care and lab services.

benefit limits

In terms of dollar amount or a number of days in the hospital, what determines the maximum amount paid?

Blank 1: deductible or deductibles

Increasing your lowers your premium.

driving records family history cholesterol levels

Insurance companies look at which of the following as guidelines for preferred rates:

Blank 1: public Blank 2: private

Insurance protection is available from several and sources.

professional organizations government agencies labor unions employers

Insurance protection is available from the following sources

True

Insurance providers are tightening their guidelines for who gets coverage.

renter's insurance

Insurance similar to homeowner's that is available for tenants is

not valuable

Jim has what some would call "the best life insurance policy on the market," but it does not meet his objectives. Therefore, to Jim this policy is

banning companies from dropping people when they get sick providing tax credits for small businesses to make employee coverage affordable prohibiting lifetime caps on coverage

Key provisions in the Patient Protection and Affordable Care Act of 2010 include

prohibiting lifetime caps on coverage banning companies from dropping people when they get sick providing tax credits for small businesses to make employee coverage affordable

Key provisions in the Patient Protection and Affordable Care Act of 2010 include

Blank 1: losses, costs, loss, or cost

Liability is the legal responsibility for the financial cost of another person's financial or injuries.

steadily increasing

Life expectancy in the United States has been

Blank 1: increasing, rising, growing, or improving

Life expectancy in the United States has been steadily

Blank 1: expensive or costly

Life insurance is important, but can also be very

important and costly.

Life insurance is:

income

Life insurance replaces _____ that would be lost if the policyholder died.

nonparticipating

Life insurance that does not provide policy dividends is also called a nonpar, or ______ policy.

participating

Life insurance that provides policy dividends is called:

Blank 1: prepaid

Managed care refers to health plans that provide comprehensive health care to members.

the ability to provide the lowest premiums.

Many times the company that is the most financially secure is the one with:

financially strong company lower rates financially weak company higher rates

Match a company's financial strength with its premiums.

Fixed annuities The same income for a certain period of life. Variable annuities Monthly payments vary based on income received from stocks and investments.

Match fixed and variable annuities.

long waiting period --> lower premiums short waiting period --> higher premiums

Match the waiting periods and premiums for disability plans.

Blank 1: hospital or hospitalization

Medicare insurance is financed from a portion of Social Security taxes.

Blank 1: inflation or escalator

Most homeowner's insurance policies have a built-in clause that increases coverage as property values increase.

flood

Most homeowner's policies cover many perils, but not:

70% to 80%

Most insurers limit disability benefits from all sources to ______ of your take-home pay.

75% to 80%

Most policies pay _____ of expenses above the deductible amount; the policyholder pays the rest.

Blank 1: group

Most private insurance companies are providers of health insurance policies through employers.

the same premium for the life of the policy.

Multiyear level term insurance is advantageous because it allows you to pay:

Blue Cross

Name an independent, nonprofit membership corporation that provides protection against the cost of hospital care:

Blank 1: dividends, refunds, dividend, or refund

Nonparticipating life insurance policies do not provide annual policy

Blank 1: mortality or death

One factor that affects the price of a life insurance policy is the rate of death among policyholders, also called rate.

Blank 1: financially or economically

One of the main factors when determining which companies to buy policies from is whether or not the company is strong.

Blank 1: leave, give, distribute, or provide

One question to ask when considering life insurance is "how much money you would like to to your dependents"?

Blank 1: A

Part of Medicare covers all services for inpatient hospital care after you pay a single deductible.

Blank 1: dividends or dividend

Participating policies refund part of the policy premium called a policy

False

People's risk management needs typically remain unchanged throughout their lives.

pure or insurable

Personal risk, property risk, and liability risk are called risk since there would be a chance of loss only if the specified events occurred.

old age unemployment illness disability

Personal risks are uncertainties surrounding loss of income or life due to ______

income

Personal risks are uncertainties surrounding loss of or life due to premature death, illness, disability, old age, or unemployment.

True

Physical damage to a property is caused by hazards such as fire, wind, water, and smoke.

X-rays doctors' fees for nonsurgical care lab tests

Physician expense insurance provides benefits for which of the following?

lab tests X-rays doctors' fees for nonsurgical care

Physician expense insurance provides benefits for which of the following?

managed care

Prepaid health plans that provide comprehensive health care to members are called

Standard Ordinary Mortality Table

Records covering many years and including millions of lives have been combined into tables called the

Blank 1: state or area

Regardless of whom you purchase insurance from, make sure that the company and employees are licensed in your

home health providers

Rising hospital care costs, new medical technology, and the increasing number of elderly people have helped make Blank______ one of the fastest-growing areas of the health care industry.

Blank 1: assumption, taking, management, or assuming

Self-insurance is a risk strategy that requires the establishment of a monetary fund to cover the cost of a loss.

pays medical benefits as needed

Self-insurance is an arrangement in which a company collects premiums from employees and

Blank 1: risk

Shifting of is done through the purchase of an insurance policy.

Blank 1: policy, coverage, or plan

Shifting of risk is done through the purchase of an insurance from an insurance company.

Blank 1: premium, fee, amount, or rate

Similar to car and life insurance, the individual pays a specified for health insurance in exchange for some degree of financial assurance.

100

Stop-loss is a provision under which an insured pays a certain amount, after which the insurance company pays Blank______% of the remaining covered expenses.

100

Stop-loss is a provision under which an insured pays a certain amount, after which the insurance company pays ______% of the remaining covered expenses.

Blank 1: estate Blank 2: life

Strategies designed to reduce the financial impact of death include planning, insurance, and Social Security survivor benefits.

$20,000

Suppose Kenny is involved in an accident that was not his fault and the other driver has 50/100/25 coverage limits. Kenny's injuries amount to $20,000. How much will the other driver's policy cover for Kenny's claim?

fire windstorm smoke

Tenants Form HO-4 covers personal belongings from the perils of which of the following?

temporary insurance.

Term life insurance is:

Blank 1: period, portion, amount, duration, or length

Term life insurance provides protection for a specific of time (temporary life insurance)

a certain amount of time.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 requires employers to offer employees and dependents, who would otherwise lose group health insurance, the option to continue their group health coverage for:

Blank 1: similar, equal, identical, close, or comparable

The DINK method is useful if your spouse earns an income that is to yours.

unstable income a spouse in poor health

The DINK method may not be the best method for couples who have

dropping people from

The Patient Protection and Affordable Care Act bans insurance companies from _____ coverage when they get sick.

Blank 1: gender or sex

The Standard Ordinary Mortality Table of 2001 was originally structured based on age and

nonworking spouse

The ______ method takes into consideration the cost of replacing services, such as child care, housekeeping, and cooking.

Blank 1: increased, higher, greater, rising, increasing, or high

The added use of technology, use of prescription drugs, life expectancy of the elderly, and accidents and crimes all lead to health care costs.

cash value (cash surrender value)

The amount received after giving up a whole life type of insurance policy (straight life policy, cash value policy, ordinary life policy) is called the

cash value

The amount received after giving up a whole life type of insurance policy is called the

Blank 1: retail, cash, market, selling, sale, monetary, or resale

The amount you can collect with collision insurance is limited to the actual value of the automobile at the time of the accident.

Blank 1: dollar, cash, or monetary Blank 2: days or day

The benefit limits provision defines the maximum benefits possible in terms of either a(n) amount or a number of in the hospital.

Blank 1: life or lifestyle

The best plans are flexible enough to handle changing situations.

Blank 1: stock Blank 2: bond

The cash values of variable life insurance policies fluctuate based on the yields earned by a separate fund which which will typically include categories such as a(n) fund, a money market fund, or a(n) fund.

Reducing risks and, therefore, financial loss improves your chances for economic, social, physical, and emotional well-being.

The connection between managing risks and maximizing your success can be best described by which of the following statements?

the employer and employee.

The cost of group health insurance is sometimes split between

freezing smoke fire and lightning theft

The coverage of HO-3 policies includes which of the following perils?

freezing smoke theft fire and lightning

The coverage of HO-3 policies includes which of the following perils?

war

The coverage of tenants form HO-4 covers damages to personal property from all of the following perils except:

Blank 1: seven or 7

The easy method is based on the assumption that it will take years to adjust to financial consequences of death.

is entitled to benefits under the policy.

The eligibility provision defines who:

True

The exclusions and limitations provision may deny coverage for preexisting conditions, cosmetic surgery, or routine checkups.

does not provide benefits

The exclusions and limitations provision specifies the conditions or circumstances for which the policy

employees and dependents who would normally lose group health insurance.

The federal Consolidated Omnibus Budget Reconciliation Act of 1986 requires many employers to offer group health benefits to:

loss of services. final expenses. loss of income.

The financial impact of death includes:

Increased expenses Loss of income Loss of services

The financial impact of disability includes which of the following?

catastrophic hospital expenses. loss of income.

The financial impact of illness includes:

Blank 1: avoidance Blank 2: reduction Blank 3: assumption Blank 4: shifting

The four risk management methods (in the same order as presented in the text) include risk , risk , risk , and risk .

Blank 1: property

The goals of insurance include minimizing personal, , and liability risks.

minimizing property risks. minimizing liability risks. minimizing personal risks.

The goals of insurance include:

28 to 31 days

The grace period typically allows a lapse of ______ to pay the premium payment.

equal

The limited installment payment option allows for the payment of life insurance to be paid in Blank______ periodic installments for a specified number of years after your death.

equal

The limited installment payment option allows for the payment of life insurance to be paid in ______ periodic installments for a specified number of years after your death.

False

The main bodily injury coverages are bodily injury liability, mortgage payments coverage, and uninsured motorist protection.

uninsured motorist's protection. medical payments coverage. bodily injury liability.

The main bodily injury coverages are:

vehicle type, rating territory, and driver classification.

The main factors that influence premiums for automobile insurance are:

self-funded

The main risk involved with a Blank______ health plan is the financial burden if the medical bills are greater than the amount covered by premium income.

your responsibility for damage to the property of others damage or loss to your property your responsibility for injuries to others

The main types of risks related to a home and an automobile are

your responsibility for injuries to others your responsibility for damage to the property of others damage or loss to your property

The main types of risks related to a home and an automobile are

Blank 1: 65

The majority of people who draw on Medicare are or older.

Blank 1: DINK

The method is used for families with simple insurance needs that have no dependents.

Blank 1: year

The money in a flexible spending account must be used for health care and used by the end of the

a housekeeper a cook a child care provider

The nonworking spouse method takes into consideration the cost of replacing the services of

regular income for life.

The primary reason to buy an annuity is to give you:

insurance

The protection against possible loss that gives you peace of mind is called

show their ability to cover the costs of damage or injury from automobile accidents

The purpose of a financial responsibility law is to force drivers to

older U.S. population new medical technology rising hospital costs

The reasons for the increased need for home health care include

rising hospital costs older U.S. population new medical technology

The reasons for the increased need for home health care include

Blank 1: investment

The risk is assumed by policyholders for a variable life insurance policy.

Blank 1: comprehensive

The risk of physical damage to your car such as fire, theft, falling objects, and hitting an animal are covered by physical damage.

purchase health insurance. use Medicare practice health-enhancing behaviors.

The strategies for reducing the financial impact of illness include:

use Medicare purchase health insurance. practice health-enhancing behaviors.

The strategies for reducing the financial impact of illness include:

Blank 1: rates, premiums, fees, or costs

To establish and benefits, insurance company actuaries rely on statistics that tell them how many people in a certain population group will become ill and how much their illnesses will cost.

service station, but not for the cost of repairs

Towing and emergency road service coverage pays for the cost of getting your vehicle to a ______.

True

True or false: A beneficiary is a person designated to receive something, such as life insurance proceeds.

True

True or false: A household inventory is a list or other documentation of personal belongings with purchase dates and cost information.

False

True or false: A person should never reevaluate their insurance needs once they sign a policy.

False

True or false: A term life insurance policy is one in which policyholders pay the same premium each year as long as they live

False

True or false: Administration costs for health care in the United States are less than in nations such as Canada and Mexico.

True

True or false: Automobile insurance covers property and personal damage caused by the policyholder's car.

True

True or false: Comparison shopping can usually help to lower the premiums on your homeowner's insurance policy.

True

True or false: Completing driver training and maintaining a safe driving record will help reduce your automobile insurance premiums.

False

True or false: Comprehensive physical damage insurance for your car covers damage to your vehicle if you are at fault in an accident.

True

True or false: Healthfinder includes links to more than 1,600 websites operated by government and nonprofit organizations.

true

True or false: Home owner's insurance covers damages to your home due to many perils, such as fire and windstorm, and it also covers personal injuries received by persons on your property.

False

True or false: If there are teenage children, the DINK method can typically be reduced.

True

True or false: If you have not paid your premium by the end of the grace period, your policy lapses.

False

True or false: In most cases, the cost of group health insurance is entirely paid by the employee

True

True or false: In the first part of the insurance application, you state your name, sex, policy desired, and other information, and in the second part you give your medical history.

False

True or false: Increasing your deductibles will increase your premiums for your homeowner's policy.

False

True or false: Insurance for your home should cover the amount you paid for the home.

True

True or false: Insurers limit benefits from all sources to 70%-80% of your take-home pay because you no longer incur work-related expenses and your taxes are much lower, if not zero.

True

True or false: Lending institutions require home mortgage borrowers to have home insurance.

True

True or false: Life insurance is one of a few ways to provide income and liquidity at the time of death.

true

True or false: Life insurance replaces income lost when the policyholder dies.

False

True or false: Most private insurance companies do not provide group policies

True

True or false: Multiyear level term insurance is also called straight term insurance.

True

True or false: Risk management is a long-range financial planning process that helps reduce financial losses caused by destructive events.

False

True or false: The amount you can recover with collision insurance is limited to the wholesale value of your vehicle.

True

True or false: The best risk management plans are flexible enough to handle life's changing situations.

False

True or false: The hospital indemnity policy is a major medical protection.

False

True or false: The main types of risks related to a home and an automobile are property damage and loss of income due to premature death.

True

True or false: When we make a decision to assume risk, we are essentially self-insuring.

True

True or false: Your driver classification is one of the main factors that affects the premium for your vehicle insurance.

False

True or false: Your homeowner's insurance covers damage to your home, other structures on your property, and your automobile.

Blank 1: variable

Under the annuity option, payments vary monthly based on changes in investment returns.

Blank 1: group, class, or plan

Under the guaranteed renewable policy provision, the insurance company cannot raise premiums unless it raises premiums for all members in your

help you to provide better protection for you and your family

Understanding and managing risks can ____

Blank 1: term Blank 2: investment or investing

Universal life is a whole life policy that combines life insurance and elements.

family need

Unlike other methods of determining life insurance coverage, which method takes into consideration your social security and liquid assets?

any salary or income lost due to injury in an automobile accident.

Wage loss insurance will reimburse you for:

Blank 1: reduction or avoidance

Wearing your seatbelt or installing smoke alarms would belong to the risk technique of risk management.

reduction or avoidance

Wearing your seatbelt or installing smoke alarms would belong to the risk technique of risk management.

The use of expensive technologies An increased number of crimes and accidents

What are some of the factors that have led to increasing health care costs?

Installing security devices Maintaining a safe driving record Comparison shopping for automobile insurance Completing driver training

What are some ways of reducing premiums on automobile insurance?

Social Security worker's compensation employer plans

What are the sources of disability income coverage?

General statistical models

What do insurance company actuaries rely on to establish rates and benefits?

a financial burden

What might a person who is uninsured experience during times of illness and injury?

Medicaid

What program was designed to provide medical assistance to low-income individuals and families?

coordination of benefits

What provision prevents you from collecting benefits from two or more group policies that would in total exceed the actual charges?

have certain disabilities be 65 or older

What qualifications must you have to be eligible for Medicare?

umbrella policy

What type of policy supplements your basic personal liability coverage and provides protection for injury claims?

speculative risk.

When a risk includes a chance of either loss or gain, it is called:

shop around and compare costs.

When buying life insurance policies, you should

How much money do you want to leave? When would you like to retire? How much are you able to pay?

When considering life insurance, what questions should you ask?

Blank 1: future

When considering life insurance, you should consider present and sources of income.

financially strong.

When looking to buy insurance, you should purchase from a company that is:

pure risk

When there is only a chance for loss if a specified event occurs, a risk is called

Blank 1: hospital Blank 2: doctor, physician, or provider

When you assign benefits, you sign a paper allowing your insurance company to make payments to your or .

Blank 1: changes

Whenever your situation substantially, you should update your insurance coverage.

Households with small children

Which household has the highest need for life insurance?

disability income insurance

Which insurance provides payments to replace income when an insured person is unable to work for a long period of time?

Medigap insurance

Which insurance supplements Medicare by filling the difference between Medicare payments and medical costs not covered by Medicare?

easy method

Which method uses an equation of 70% of your salary for seven years?

$100,000 limit claim per person and $300,000 limit for each accident

Which of the following accurately describes the split limits of 100/300 with bodily injury liability for automobile insurance?

initiating community health education programs getting involved in community health planning offering incentives to encourage preventive care

Which of the following activities have been undertaken by health care professionals and consumers to keep the overall cost of health care down?

house personal property other structures

Which of the following are covered by a homeowner's policy?

other structures house personal property

Which of the following are covered by a homeowner's policy?

personal liability additional living expenses personal property

Which of the following are covered by renter's insurance?

Wearing seat belts Quitting smoking

Which of the following are examples of the risk reduction technique of risk management?

age and sex driving record marital status

Which of the following are factors in setting a driver classification?

driving record age and sex marital status

Which of the following are factors in setting a driver classification?

the return on investments the mortality rate it expects among policyholders the costs of doing business

Which of the following are factors that affect the price of an insurance policy?

avoidance reduction assumption

Which of the following are general risk management techniques?

full cost of temporary living expenses up to a year 10% to 20% of the home's coverage

Which of the following are possible limits to the coverage for additional living expenses in a homeowner's insurance policy?

deciding not to purchase collision insurance self-insuring

Which of the following are risk assumption actions?

self-insuring deciding not to purchase collision insurance

Which of the following are risk assumption actions?

55% of the home coverage 75% of the home coverage 70% of the home coverage

Which of the following are typical of the limits of coverage for personal belongings in a homeowner's insurance policy?

75% of the home coverage 70% of the home coverage 55% of the home coverage

Which of the following are typical of the limits of coverage for personal belongings in a homeowner's insurance policy?

coverage for your residence and its financial risks

Which of the following best defines homeowner's insurance?

present and future income group life insurance net worth

Which of the following factors should be considered before buying life insurance?

catastrophic illness personal and property damage when driving loss of home or belongings

Which of the following financial losses can you insure against?

Make sure your company is licensed in your state. Understand your policy. Inform your beneficiaries.

Which of the following is important when buying life insurance?

www.insurancecompanyconsumerguides.com

Which of the following is not a source of ratings for insurance companies?

These policies pay all costs of being hospitalized with no limits.

Which of the following is not true about hospital expense coverage?

Coverage for the financial risks associated with injuries to others Coverage for your place of residence Coverage for the financial risks of damage to personal property

Which of the following risks are covered by homeowner's insurance?

estate planning life insurance Social Security survivor benefits

Which of the following strategies help reduce the financial impact of death?

drawing upon savings and investments during your disability collecting Social Security disability income collecting disability income from a disability insurance policy

Which of these strategies help reduce the financial impact of a disability?

limited installment payment

Which option pays beneficiaries in equal, periodic installments for a specified number of years after the death of the insured?

exclusive provider organization (EPO)

Which organization renders medical care from affiliated health care providers?

reimbursement

Which policy provides benefits based on the actual expense incurred?

Major medical insurance

Which type of health insurance plan pays the large costs of hospital stays and of surgeries—in other words serious injuries or long illnesses?

Comprehensive

Which type of insurance is complete major medical insurance that has a very low deductible?

long-term care

Which type of insurance is the fastest growing type of insurance today?

surgical expense insurance

Which type of insurance pays part or all of the surgeon's fees for an operation?

major medical expense insurance

Which type of insurance pays the larger expenses of a serious injury or long illness, including those covered by the hospital, surgical, and physician expense policies?

physician expense insurance

Which type of insurance provides benefits for doctors' fees for nonsurgical care, X-rays, and lab tests?

life insurance

Which type of insurance provides liquidity at the time of death?

hospital indemnity policy

Which type of policy pays benefits when you are hospitalized that are in cash and you can spend as you choose?

Blank 1: renewable or renewability

With a option, you can continue your existing term coverage for the next period without a medical reexamination.

guaranteed renewable

With a(n) ______ policy provision, the insurance company cannot cancel unless you fail to pay premiums when due.

Blank 1: lower or smaller

With disability plans, the longer the waiting period, the the premiums.

Blank 1: limited

With the payment policy, you pay premiums up to a certain age until you are paid up, and then you are insured for life.

gross pay

You should aim for a benefit amount that, when added to your other income, will equal 60% to 70% of your

price

You shouldn't select a company based on ______ alone.

rating territory

Your ______ is the place of residence used to determine your automobile insurance premiums

Blank 1: driver Blank 2: classification

Your insurance is based on your gender, age, and driving record.

Blank 1: rebuild, build, replace, or fix

Your insurance protection for your home should be based on the amount needed to or repair your house and not the amount you originally paid for the home.

Blank 1: Healthfinder

compiles websites from nonprofits, federal and local websites, and many other sources to present a complete health resources website.

Assigning benefits

cuts down on paperwork and time by allowing your insurance company to pay the hospital before you receive the bill from them.

Blank 1: Physical

damage to a property is caused by events such as fire, wind, water, and smoke.

Blank 1: Medigap or MedSup

insurance makes up the difference between Medicare payments and medical costs not covered by providing supplemental insurance that can be purchased

Blank 1: Disability Blank 2: Income

insurance provides regular cash income lost by employees as a result of an accident or illness.

Blank 1: Liability

is the legal responsibility for the financial loss due to injuries to others or damage to property for which you are responsible.

Insurance

is the process of paying a premium in exchange for financial protection.

Blank 1: Major

medical expense insurance pays most of the costs exceeding those covered by the hospital, surgical, and physician expense policies.

Your most challenging concepts Define hospital indemnity policy. Contrast good versus poor disability plans. Define preferred provider organization (PPO).

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Your most challenging concepts Recall that the amount you can recover with collision insurance is limited to the cash value of the automobile at the time of the accident. Identify the coverage provided by a homeowner's policy. Recall the limits of coverage for personal belongings in a homeowner's insurance policy

mhmmmm

Your most challenging concepts Conclude that a life insurance policy is valuable only if it meets your objectives. Recognize the type of person who benefits from cash value policies. Recall the advantages of term insurance.

mmmhmmm

Speculative

risk, such as the risk of starting a business or gambling with your money, carries a chance of either loss or gain.

Blank 1: Long

term care insurance provides day-in day-out care for extended illness or disability.

Blank 1: Medicaid

was designed to provide medical assistance to groups or categories of persons who are eligible to receive payments under one of the cash assistance programs.

PPOs

work like HMOs, except the networks are managed by doctors and hospitals.