Fundamentals Of Insurance Exam II Questions with Correct Answers 2025

Fundamentals Of Insurance: Exam II
Questions with Correct Answers 2025
MechanismAthatAsharesAandAdispersesAtheAriskAofAfinancialAlossAdueAtoAtheAoccurrenceAofAanAadverseAeve
ntAwithinAtheApopulation.A-ACORRECTAANSWERA-insurance



InsuranceAhelpsAtoAimproveAtheA___A___AofAindividualsAandAorganizations.A-ACORRECTAANSWERA-
financialAstability



WeApayAaAfeeA(___)AintoAaApoolAofAresourcesAthatAwillAprovideAincomeAorAserviceAbenefitsAtoAholdersA(___)
AofAanAinsuranceAcontractA(___).A-ACORRECTAANSWERA-premiums;Abeneficiaries;Apolicy




InsuranceAhelpsAtoAprotectAagainstA___AandA___AfinancialAloss.A-ACORRECTAANSWERA-
unforeseenAandAsevere



InsuranceAIsAAASetAofA2AContracts:A-ACORRECTAANSWERA--
OneAisAbetweenAtheAinsuranceAcompanyAandAtheAcontractAholderA(beneficiary)

-OneAisAbetweenAtheAinsuranceAcompanyAandAtheAprovider



WhyAdoAIA(futureAOTA)AneedAtoAknowAthis?A-ACORRECTAANSWERA--
needAtoAunderstandAtheAbasicsAaboutAinsuranceAsoAyouAcanAmeetAtheAobligationsAasAaAproviderAforAreimb
ursement

-
insuranceAfundsAtheAmajorityAofAtherapyAservices,AOTApractitionersAneedAtoAunderstandAtheAformAandAstr
uctureAofAinsuranceAtoAmeetAcontractualAobligationsAforAreimbursement!

-
toAbeAableAtoAtalkAwithAtheAcaseAmanagers;AtheyAareAgoingAtoAassumeAthatAyouAknowAtheAlanguageAofAins
urance.



OnceAyouAbuyAinsuranceAyouAbecomeApartAofAtheAinsuranceAcompany'sA___A___.A-ACORRECTAANSWERA-
riskApool



TheyAcollectApremiumsAfromAeachAmember,AthenAwhatAisAthatAmoneyAisAusedAfor?A-ACORRECTAANSWERA-
toApayAtheAclaimsApresentedAtoAtheAinsuranceAcompanyAbyAtheAproviders

, T/F:

TheApurchaseAofAinsuranceAdoesAnotAguaranteeAthatAyou'llAreceiveAbenefitsAequalAtoAtheAmoneyAthatAyouA
haveApaidAintoAtheApool.A-ACORRECTAANSWERA-True



TheAinsuranceAcompanyAisAhopingAthatAyouAdon't.AWhy?A-ACORRECTAANSWERA-
IfAeveryAoneAdidAthenAtheAinsuranceAcompanyAwouldAgoAbankrupt.



ThereAareAinsuranceAprogramsAthatAareAorganizedAandAadministeredAby:A-ACORRECTAANSWERA-
theAgovernmentAandAprivateAcompanies



WhatAareAexamplesAofAgovernmentAinsuranceAprograms?A-ACORRECTAANSWERA-Medicare



PrivateAcompaniesAareAregulatedAbyA___AgovernmentsAtoAinsureAthatAtheAcompaniesAhaveAenoughAfinanci
alAreservesAtoAcoverAtheAneedsAofAtheirAriskApool.A-ACORRECTAANSWERA-state



T/F:

InsuranceAcontractsAtellAprovidersAwhatAtoAdo.A-ACORRECTAANSWERA-False,AdoAnot



InsuranceAcontractsAinformAtheAbeneficiaryAandAtheAproviderAabout:A-ACORRECTAANSWERA-
whatAservicesAareAcoveredAandAhowAmuchAofAtheAcostAofAcareAwillAbeApaidAforAbyAtheAinsuranceAcompany



T/F:

InsuranceAdoesn'tAnecessarilyApayAforAeverythingAthatAaAphysicianAordersAorAallAtheAservicesAthatAyouAprov
ide.A-ACORRECTAANSWERA-True



MostAinsuranceAcompaniesAdoAnotAcoverA___AorA___Aservices.A-ACORRECTAANSWERA-
luxuryAorAexperimental



EstablishedAbasedAuponAcriteriaAsetAbyAtheAsponsorAofAtheAinsuranceAplan.A-ACORRECTAANSWERA-Eligibility