MHA 706 - MODULE 1 Frequently Tested Exam
Questions With Verified Multiple Choice and
Conceptual Actual 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. For insurance to function effectively, it must include which basic
characteristic?
A. Government oversight
B. Pooling of losses
C. Guaranteed profits
D. Mandatory enrollment
✔ Correct Answer: B
2. Which characteristic of insurance refers to payment only for events not under
the insured’s control?
A. Indemnification
B. Risk transfer
C. Payment only for random losses
D. Coverage expansion
✔ Correct Answer: C
3. Which term refers to shifting financial risk from the insured to the insurer?
A. Moral hazard
B. Indemnification
C. Risk transfer
D. Cost pooling
✔ Correct Answer: C
4. Indemnification means:
, A. Requiring deductibles
B. Restoring the insured to their prior financial condition
C. Eliminating risk entirely
D. Transferring risks to the government
✔ Correct Answer: B
Insurance Problems & Protections
5. Adverse selection refers to:
A. Overuse of services because patients pay less
B. High-risk individuals being more likely to seek insurance
C. Doctors encouraging unnecessary treatment
D. Medicare denial of claims
✔ Correct Answer: B
6. Moral hazard refers to:
A. High-risk individuals seeking coverage
B. Risk of insurance fraud
C. Overuse of healthcare services because the insured does not bear full cost
D. Premium increases due to inflation
✔ Correct Answer: C
7. Which of the following is NOT a technique insurers use to control risk?
A. Deductibles
B. Coinsurance
C. Copayments
D. Universal reimbursement
✔ Correct Answer: D
8. Coinsurance requires the patient to:
A. Pay a fixed fee
B. Pay a percentage of medical expenses
Questions With Verified Multiple Choice and
Conceptual Actual 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. For insurance to function effectively, it must include which basic
characteristic?
A. Government oversight
B. Pooling of losses
C. Guaranteed profits
D. Mandatory enrollment
✔ Correct Answer: B
2. Which characteristic of insurance refers to payment only for events not under
the insured’s control?
A. Indemnification
B. Risk transfer
C. Payment only for random losses
D. Coverage expansion
✔ Correct Answer: C
3. Which term refers to shifting financial risk from the insured to the insurer?
A. Moral hazard
B. Indemnification
C. Risk transfer
D. Cost pooling
✔ Correct Answer: C
4. Indemnification means:
, A. Requiring deductibles
B. Restoring the insured to their prior financial condition
C. Eliminating risk entirely
D. Transferring risks to the government
✔ Correct Answer: B
Insurance Problems & Protections
5. Adverse selection refers to:
A. Overuse of services because patients pay less
B. High-risk individuals being more likely to seek insurance
C. Doctors encouraging unnecessary treatment
D. Medicare denial of claims
✔ Correct Answer: B
6. Moral hazard refers to:
A. High-risk individuals seeking coverage
B. Risk of insurance fraud
C. Overuse of healthcare services because the insured does not bear full cost
D. Premium increases due to inflation
✔ Correct Answer: C
7. Which of the following is NOT a technique insurers use to control risk?
A. Deductibles
B. Coinsurance
C. Copayments
D. Universal reimbursement
✔ Correct Answer: D
8. Coinsurance requires the patient to:
A. Pay a fixed fee
B. Pay a percentage of medical expenses
