Business and Personal Finance © 2007

Chapter 14: Health, Disability, and Life Insurance

Practice Tests

1
_______ is the percentage of medical expenses the policyholder must pay in addition to the deductible.
A)coinsurance
B)stop loss
C)co-payment
D)COBRA
2
A provision that requires a policyholder to pay all costs up to a certain amount, after which the insurance company pays 100 percent of the remaining costs is called _______.
A)comprehensive major medical
B)physician expense
C)stop loss
D)hospital expense
3
A _______ is a health insurance plan that directly employs or contracts with selected, or preapproved, physicians and other medical professionals to provide health care services in exchange for a fixed, prepaid monthly premium.
A)health maintenance organization (HMO)
B)preferred provider organization (PPO)
C)point-of-service (POS) plan
D)home health care agency
4
A _______ plan combines features of both HMOs and PPOs.
A)Blue Cross
B)Medicare
C)Medicaid
D)point-of-service (POS)
5
_______ is a medical assistance program offered to certain low-income individuals and families.
A)Medicaid
B)Medicare
C)Blue Cross
D)Blue Shield
6
_______ is an insurance company that provides benefits for surgical and medical services performed by physicians.
A)Blue Shield
B)Blue Cross
C)Medicare
D)Medicaid
7
_______ is available only to workers who are injured on the job.
A)disability income insurance
B)Medicare
C)Medicaid
D)worker's compensation
8
A _______ is a person named to receive the benefits from an insurance policy.
A)double indemnity
B)beneficiary (insurance)
C)rider
D)waiver
9
_______ is a type of life insurance that pays less to the beneficiary as time passes.
A)conversion term
B)renewable term
C)decreasing term
D)multiyear level term
10
Policyholders are paid in cash under _______.
A)hospital indemnity policies
B)comprehensive major medical
C)physician expense
D)Blue Shield
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