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Lesson 11 Quiz

The following quiz is provided for your information to help you measure your retention level on the material covered within this lesson. It is not graded. Only the final examination is graded.

Answer or complete each question to the best of your knowledge and click on the "Check your answer" button. If your answer is incorrect, you will be instructed where to find the correct answer. It is not necessary to repeat the quiz if you exit this page; however, your answers will not be saved once you exit. This feature is provided for future practice purposes.

1
Basic Forms of Coverage

Group health insurance policies are generally written on ______________ basis.

a) a participating
b) a nonparticipating
c) either a participating or nonparticipating
d) neither a participating nor nonparticipating
CORRECTTRY AGAIN (Lesson 11.1)
Check your answer

2

Which of the following would NOT be considered a basic form of coverage for health insurance plans?

a) Disability income insurance
b) Key person insurance
c) Accidental death and dismemberment insurance
d) Medical expense insurance
CORRECTTRY AGAIN (Lesson 11.1)
Check your answer

3
Purchasing Health Insurance

Life insurance, AD&D, and disability income insurance are . Medical Expense insurance is based on .


Word bank: contracts of reimbursement, valued contracts

Life insurance, AD&D, and disability income insurance are valued contracts. Medical Expense insurance is based on contracts of reimbursement.

Lesson 11.2Check your answer

4

Individual health insurance is written on a basis, whereas group health insurance is generally written on a basis.


Word bank: nonparticipating, participating

Individual health insurance is written on a nonparticipating basis, whereas group health insurance is generally written on a participating basis.

Lesson 11.2.2Check your answer

5

In Florida, group health insurance policies are not required to offer coverage for alcoholism and drug dependency to the policyholder as an option.

a) True
b) False
CORRECTTRY AGAIN (Lesson 11.2.2)
Check your answer

6
Characteristics

Under a cancelable health insurance policy, the insurer must provide written notification of contract termination ______ days in advance.

a) 14
b) 31
c) 45
d) 60
CORRECTTRY AGAIN (Lesson 11.3.1)
Check your answer

7

Under which of the following policies can insurers increase premiums when the policy is renewed?

a) Cancelable policies
b) Optionally renewable policies
c) Conditionally renewable policies
d) Guaranteed renewable policies
e) Any of the above
CORRECTTRY AGAIN (Lesson 11.3.1)
Check your answer

8

Which of the following policies does not allow insurers to increase premiums when the policy is renewed?

a) Cancelable policies
b) Optionally renewable policies
c) Conditionally renewable policies
d) Guaranteed renewable policies
e) Noncancelable policies
f) All of the above
CORRECTTRY AGAIN (Lesson 11.3.1)
Check your answer

9

Premiums for health insurance are paid regularly for annually renewable benefits. Health coverage is subject to change year to year and premiums are subject to increases year to year.

a) True
b) False
CORRECTTRY AGAIN (Lesson 11.3.2)
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10

Dividend payments are always guaranteed.

a) True
b) False
CORRECTTRY AGAIN (Lesson 11.3.3)
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11

Which are the two major factors used to determine whether dividends or refunds will be issued?

a) Expenses and claims costs
b) Expenses and interest
c) Claims costs and interest
d) Claims costs and experience
CORRECTTRY AGAIN (Lesson 11.3.3)
Check your answer

12

funds represent the insurer's liability for losses that have not occurred but for which premiums have been paid. funds represent the insurer's liability for losses that have occurred but for which settlement is not yet complete.


Word bank: Loss reserve, Premium reserve

Premium reserve funds represent the insurer's liability for losses that have not occurred but for which premiums have been paid. Loss reserve funds represent the insurer's liability for losses that have occurred but for which settlement is not yet complete.

Lesson 11.3.4Check your answer

13
Uses of Health Insurance

Cafeteria plans are also called:

a) BOEs.
b) Section 125 plans.
c) 401(k) plans.
d) Section 74 plans.
CORRECTTRY AGAIN (Lesson 11.4.2)
Check your answer

14

Premiums for business overhead expense insurance are . Benefits are income.


Word bank: tax deductible, taxable

Premiums for business overhead expense insurance are tax deductible. Benefits are taxable income.

Lesson 11.4.3Check your answer

15

Which of the following characteristic(s) is/are associated with a disability buy-out plan?

a) Provisions to cover the business' overhead expenses
b) Irrevocable agreements
c) Lengthy elimination periods
d) All of the above
CORRECTTRY AGAIN (Lesson 11.4.3)
Check your answer

16
Group Health Insurance

A fictitious group is a group of persons who have gathered together strictly for the purpose of obtaining insurance.

a) True
b) False
CORRECTTRY AGAIN (Lesson 11.5)
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17

Risks the insurance company takes when insuring people who have prior health problems are called:

a) maternity benefits.
b) preexisting conditions.
c) disabilities.
d) probationary periods.
CORRECTTRY AGAIN (Lesson 11.5.3)
Check your answer

18

Group short-term disability plans are characterized by maximum benefit periods of:

a) short duration.
b) long duration.
c) 52 weeks.
d) more than two years.
CORRECTTRY AGAIN (Lesson 11.5.5)
Check your answer

19

Group AD&D plans normally contain conversion privileges.

a) True
b) False
CORRECTTRY AGAIN (Lesson 11.5.5)
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20

Under group long-term disability plans, benefit amounts are usually limited to approximately _______ of the participant's income.

a) 40%
b) 50%
c) 60%
d) 75%
CORRECTTRY AGAIN (Lesson 11.5.5)
Check your answer

21

Group long-term disability plans usually provide a benefit period of:

a) up to two years, occasionally extending to the insured's retirement age.
b) two years.
c) up to five years.
d) 26 weeks.
CORRECTTRY AGAIN (Lesson 11.5.5)
Check your answer

22

The difference between credit life insurance and credit accident & health insurance is that in credit life insurance, the insured must before the loan benefits will pay; in credit accident & health insurance, the insured must .


Word bank: become disabled, die

The difference between credit life insurance and credit accident & health insurance is that in credit life insurance, the insured must die before the loan benefits will pay; in credit accident & health insurance, the insured must become disabled.

Lesson 11.5.6Check your answer

23

Under a group health plan, if the insured's out-of-pocket expenses exceed _______ of the individual's adjusted gross income, a tax deduction can be taken for expenses over and above that mark.

a) 5%
b) 5.5%
c) 7%
d) 7.5%
CORRECTTRY AGAIN (Lesson 11.5.7)
Check your answer

24

Group health plan premium payments made by the employer are to the employer. Premium payments made by the employee are .


Word bank: not tax deductible, tax deductible

Group health plan premium payments made by the employer are tax deductible to the employer. Premium payments made by the employee are not tax deductible.

Lesson 11.5.7 CONGRATULATIONS on completing Lesson 11. Now complete the Florida study manual Chapters 15, 24, and 25 Questions for Review.Check your answer