CPCU 553 Final Exam Questions with Correct Answers
According to the National Safety Council, what percentage of disabling!@#$%%%%%
accidents and
illnesses are work-related? %%%%%%
Select one:
Fewer than one-half of Social Security Disability Insurance claims are approved.
About 4 percent of Americans are disabled.
The average benefit paid by Social Security Disability Insurance is almost $3,000 per
month.
Only about five percent of Americans entering the work force today will become
disabled before they retire. - (ANSWERS)A. Fewer than one-half of Social Security
Disability Insurance claims are approved.
A disability income policy has a rider that increases the monthly benefit amount by 4
percent for each of the first five years the policy is in force, if benefits have not yet begun.
This is an example of which one of the following types of riders?
Select one:
Cost of living adjustment
Automatic increase
Guaranteed insurability
Future increase option - (ANSWERS)B. Automatic increase
Which one of the following statements about most group long-term disability income
insurance plans is true?
They have a coordination-of-benefits provision that defines how disability income
benefits from programs such as Social Security will affect benefits under the group
plan.
They use an "any occupation" definition of disability for an initial period, and then
change to an "own occupation" definition of disability.
They replace 100 percent of lost income.
They have a waiting period of at least two years. - (ANSWERS)A. They have a
coordination-of-benefits provision that defines how disability income benefits from
programs such as Social Security will affect benefits under the group plan.
Which one of the following statements about Blue Cross and Blue Shield plans is true?
They typically reimburse insureds for medical expenses incurred, and then the
insureds pay providers.
They are often administered by for-profit organizations.
They are usually considered commercial insurers and regulated by the same laws.
Their biggest limitation is that they offer only basic medical expense coverage. -
(ANSWERS)B. They are often administered by for-profit organizations.
Chris and Bill have their family insured under a plan that allows them to select their own
healthcare provider without any restrictions. The plan then reimburses them for a
, CPCU 553 Final Exam Questions with Correct Answers
percentage of their medical expenses after the satisfaction of a deductible. This is an
!@#$%%%%%
example of %%%%%%
An indemnity plan.
A health maintenance organization plan.
A preferred provider organization plan.
A point-of service plan. - (ANSWERS)A. An indemnity plan.
Part B of original Medicare (medical insurance) provides benefits for which one of the
following?
Inpatient hospital care
Doctors' services
Hospice care
Outpatient prescription drug coverage - (ANSWERS)B. Doctors' services
Which one of the following statements best describes Medicaid.
It is a means-tested federal-state welfare program that covers the medical expenses
of low income persons.
It is a federal program that provides long-term care benefits to anyone who is
enrolled in Medicare.
It is a social insurance program that provides medical expense benefits to certain
categories of persons, regardless of their income and assets.
It is a series of state programs designed to make medical expense coverage more
readily available to all state residents. - (ANSWERS)A. It is a means-tested federal-
state welfare program that covers the medical expenses of low income persons.
Which one of the following statements about long-term care insurance is true?
A nonforfeiture option provides cost-of-living increases.
Most individual policies have a guaranteed renewability provision.
To prevent adverse selection, most individual policies have preset benefits and offer
little choice to consumers.
The majority of policies sold today cover care only if it is provided in a nursing home.
- (ANSWERS)B. Most individual policies have a guaranteed renewability provision.
Most long-term care policies have a provision that provides the services of a care
coordinator. Which one of the following statements about this provision is true?
The coordinator helps arrange for and monitor care.
Care is limited to the providers who work with the coordinator.
The coordinator must be a licensed physician.
The care coordinator's help is usually mandatory. - (ANSWERS)A. The coordinator
helps arrange for and monitor care.
All of the following can be covered by a dwelling policy, EXCEPT:
According to the National Safety Council, what percentage of disabling!@#$%%%%%
accidents and
illnesses are work-related? %%%%%%
Select one:
Fewer than one-half of Social Security Disability Insurance claims are approved.
About 4 percent of Americans are disabled.
The average benefit paid by Social Security Disability Insurance is almost $3,000 per
month.
Only about five percent of Americans entering the work force today will become
disabled before they retire. - (ANSWERS)A. Fewer than one-half of Social Security
Disability Insurance claims are approved.
A disability income policy has a rider that increases the monthly benefit amount by 4
percent for each of the first five years the policy is in force, if benefits have not yet begun.
This is an example of which one of the following types of riders?
Select one:
Cost of living adjustment
Automatic increase
Guaranteed insurability
Future increase option - (ANSWERS)B. Automatic increase
Which one of the following statements about most group long-term disability income
insurance plans is true?
They have a coordination-of-benefits provision that defines how disability income
benefits from programs such as Social Security will affect benefits under the group
plan.
They use an "any occupation" definition of disability for an initial period, and then
change to an "own occupation" definition of disability.
They replace 100 percent of lost income.
They have a waiting period of at least two years. - (ANSWERS)A. They have a
coordination-of-benefits provision that defines how disability income benefits from
programs such as Social Security will affect benefits under the group plan.
Which one of the following statements about Blue Cross and Blue Shield plans is true?
They typically reimburse insureds for medical expenses incurred, and then the
insureds pay providers.
They are often administered by for-profit organizations.
They are usually considered commercial insurers and regulated by the same laws.
Their biggest limitation is that they offer only basic medical expense coverage. -
(ANSWERS)B. They are often administered by for-profit organizations.
Chris and Bill have their family insured under a plan that allows them to select their own
healthcare provider without any restrictions. The plan then reimburses them for a
, CPCU 553 Final Exam Questions with Correct Answers
percentage of their medical expenses after the satisfaction of a deductible. This is an
!@#$%%%%%
example of %%%%%%
An indemnity plan.
A health maintenance organization plan.
A preferred provider organization plan.
A point-of service plan. - (ANSWERS)A. An indemnity plan.
Part B of original Medicare (medical insurance) provides benefits for which one of the
following?
Inpatient hospital care
Doctors' services
Hospice care
Outpatient prescription drug coverage - (ANSWERS)B. Doctors' services
Which one of the following statements best describes Medicaid.
It is a means-tested federal-state welfare program that covers the medical expenses
of low income persons.
It is a federal program that provides long-term care benefits to anyone who is
enrolled in Medicare.
It is a social insurance program that provides medical expense benefits to certain
categories of persons, regardless of their income and assets.
It is a series of state programs designed to make medical expense coverage more
readily available to all state residents. - (ANSWERS)A. It is a means-tested federal-
state welfare program that covers the medical expenses of low income persons.
Which one of the following statements about long-term care insurance is true?
A nonforfeiture option provides cost-of-living increases.
Most individual policies have a guaranteed renewability provision.
To prevent adverse selection, most individual policies have preset benefits and offer
little choice to consumers.
The majority of policies sold today cover care only if it is provided in a nursing home.
- (ANSWERS)B. Most individual policies have a guaranteed renewability provision.
Most long-term care policies have a provision that provides the services of a care
coordinator. Which one of the following statements about this provision is true?
The coordinator helps arrange for and monitor care.
Care is limited to the providers who work with the coordinator.
The coordinator must be a licensed physician.
The care coordinator's help is usually mandatory. - (ANSWERS)A. The coordinator
helps arrange for and monitor care.
All of the following can be covered by a dwelling policy, EXCEPT:
