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).
mhmm
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.
