Ch 2 Quiz questions

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital? a) indemnity b) surgical c) blanket d) medigap

a- a hospital indemnity policy pays a fixed amount each day the insured is hospitalized, unrelated to medical expenses.

Benefit periods for individual short-term disability policies will usually continue from a) 6 months to 2 years b) 2 years to age 65 c) 1 week to 4 weeks d) 3 months to 3 years

a- short term disability is defined as a disability lasting not more than 2 years

in which of the following locations would skilled care most likely be provided? a) in an institutional setting b) at the patients home c) in an outpatient setting d) at a physicians office

a- skilled nursing care is performed under the direction of a physician usually in an institutional setting

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT: a) when the amount payable under Social Security is more than the amount payable under the rider b) when used to replace or supplement benefits payable under other social insurance programs c) when the insured is eligible for Social Security benefits but before the benefits begin d) if the insured has been denied coverage under Social Security

a- there riders provide benefits when the amount payable under Social Security is less than the amount payable under the rider 9in this case only the difference will be paid)

assuming that all of the following are covered by high deductible health plan and are not claimed as dependent on anyone's tax returns, which would NOT be eligible for a health savings plan? a) Amanda is 67 and is covered by a basic medical expense policy b) andy is 55 and is covered under a dental care policy c) jenny is 60 and also has a long term care insurance plan d) joe is 40 and is not covered by any other health insurance

a- to be eligible for a health savings account an individual must be covered by a high deductible health plan, must not be covered by other health insurance except for specific injury, accident, disability, dental care, vision care, or long term care insurance, must not be eligible for Medicare (usually age 65) and cannot be claimed as a dependent on someone else's tax return

all of the following statements concerning AD&D coverage are correct EXCEPT: a) death benefits are paid only if death occurs within 24 hours of an accident b) accidental death benefits are paid only if the death results from accidental bodily injury as defined in the policy c) dismemberment benefits are paid for certain disabilities that are presumed to be total and permanent d) accidental death and dismemberment insurance is considered to be limited coverage

a- under and AD&D insurance policy the death benefit will be paid if the accidental death occurs within 90 days of the accident not 24 hours.

who chooses a primary care physician in an HMO? a) the individual member b) HMO subscribers do not have a primary care physician c) the insurer d) a referral physician

a- when an individual becomes a member of the HMO, he or she will choose a primary care physician. once chosen the primary care physician will be regularly compensated for being responsible for the care of that member

a hospital indemnity policy will pay; a) any expense incurred by the stay in the hospital, minus coinsurance payments and deductibles b) a benefit for each day the insured is in the hospital c) income lost while the insured is in the hospital d) all expenses incurred by the stay in the hospital

b) hospital confinement indemnity policies pay specific amounts that depends on the amount of time the insured is confined to the hospital

a client has a new individual disability income policy with a 20 day probationary period and a 30 day elimination period. 10 days later the client breaks their leg and is off work for 45 days. how many days of disability benefits will the policy pay a) 10 days b) 15 days c) 25 days d) 45 days

b- a probationary period refers to the amount of time that coverage is not available for illness-related disabilities, so it would not apply to a broken leg. the elimination period however, is the time that must elapse between the onset of the disability and when benefits will start being paid. in this case, the individual is considered disabled for 45 days, and the benefits will start to be paid after 30 days. so the client will receive benefits for 15 days

an insured purchases a disability income policy with a 10 year benefit period. the policy stated a 20 day probationary period for illness. if the insured is hospitalized with an illness 2 weeks after the policy was issued, how much will the policy pay? a) it will pay until the insured is released from the hospital b) nothing, illness is not covered during the first 20 days of the contract c) the insured will receive a return of premium d) it will pay up to 10 years benefits

b- loss by illness is not covered if it occurs during the probationary period

long term care insurance policies must cover which of the following? a) injuries caused by an act of war b) Alzheimer's disease c) all mental disorders d) treatment of alcoholism

b- most long-term care policies exclude coverage for drug and alcohol dependency, acts of war, self inflicted injuries and nonorganic mental conditions. Organic cognitive disorders such as Alzheimer's disease, senile dementia and Parkinson's disease are covered

which of the following special policies covers unusual risk that are NOT normally included under accidental death and dismemberment coverage? a) credit disability b) special risk policy c) limited risk policy d) specified disease policy

b- the special risk policy will cover unusual types of risk that are not normally covered under AD&D policies. it covers only the specific hazard or risk identified in the policy, such as a racecar driver test driving a new car

in long term care (LTC) policies as the benefit period lengthens the premium; a) LTC premiums are not based on benefit periods b) decreases c) increases d) remains unchanged

c- LTC policies define the benefit period for how long coverage applies, after the elimination period. the longer the benefit period the higher the premium will be

hospital indemnity/ hospital confinement indemnity policy will provide payment based on? a) the premium paid into the policy b) the medical expense incurred c) the number of days confined in a hospital d) the type of illness

c- hospital indemnity/hospital confinement indemnity policy provides payment based only on the number of days confined in a hospital

what is the period of coverage for events such as death or divorce under COBRA? a) 60 days b) 31 days c) 12 months d) 36 months

the maximum period of coverage under COBRA is 36 months in the event of the covered employees death or divorce