Life and Health Insurance Final Exam
Questions and Answers
________ is a health insurance policy that only covers physician services and
procedures. Proves first dollar benefits by the insurer, but low coverage limits. - ANS-
Basic Medical Expense
________ is a health insurance policy that only covers room and board if the insured
stays overnight in a hospital and the miscellaneous expenses that occur because of that
stay. - ANS-Basic Hospital Expense
________ is a health insurance policy that only covers surgeries, surgeons and
anesthesiologists. It provides first dollar benefits by the insurer, but low limits. - ANS-
Basic Surgical Expense
______ is a health insurance policy that offers broad coverage and high benefits for
hospitalization, surgeries, and physician services subject to deductibles and
coinsurance. - ANS-Major Medical Expense
_________ is a type of traditional medical expense insurance designed to reimburse the
policyowner for out of pocket medical expenses. It is characterized by typically low
deductibles (100-500), coinsurance, and stop loss limits. - ANS-Comprehensive Major
Medical
What feature of Major Medical policy requires 100% payment of covered expenses after
the insured's claim cost reaches a certain level? - ANS-Stop Loss
The amount of loss paid by the policyowner before the health insurance policy pays the
claims is known as.. - ANS-Deductible
Mary has a Major Medical policy with a $200 deductible and 80/20 coinsurance
allocation. If she suffers a covered loss of $8200, how much will Mary be required to
pay for this loss? - ANS-$1800
_______ is a health insurance policy that does not have a deductible. The company
pays first when a claim is submitted. - ANS-First Dollar Coverage
Medicare enrollees who want the offset the deductibles and copayments should
purchase - ANS-A Medicare Supplement policy
, The Renewability provision of an MSP or LTC must at least provide the policyowner
rights associated with which of the following? - ANS-Guaranteed Renewable
LTC policies must offer a Free Look period of ___ days. - ANS-30
A poverty stricken 75 year old would use which of the following to cover Medicare
deductibles and copayments? - ANS-Medicaid
A wealthy 75 year old would use which of the following to cover Medicare deductibles
and copayments? - ANS-An MSP
A person who can no longer perform the activities of daily living and will require
custodial care for the rest of his life needs: - ANS-and LTC
LTCs must provide a minimum of how many months of continuous nursing home care?
- ANS-12
If a company markets MSPs, it must offer - ANS-Plan A
An LTC must provide for no less than ________ consecutive months of coverage in a
facility other than an acurat care unit of a hospital. - ANS-12
This policy coordinates with your Major Medical coverage. Once you've reached the
dollar limits of you Major Medical policy, this policy begins to pay 100% of the costs. -
ANS-Dread Disease
Stage 1 of an annuity is the accumulation period. During this period interest earned is -
ANS-Tax deferred
Withdrawals prior to age _______ are taxed and penalized _____. - ANS-59 1/2; 10%
Which of the followin is NOT one of the three options at the end of Stage 1. - ANS-
Withdraw without penalty
__________ allows you to decide how much income you want each month or how long
you need payments - ANS-Annuity Certain
his annuity provides stipulated payments at regular intervals for the life of the annuitant
with no refund provisions once the annuitant dies. The most common use is to build a
tax-deferred sum of money that funds stream of income that you cannot outlive. - ANS-
Life Annuity
A ___________ contract will not pay income benefits until a later date, usually the
annuitant's retirement age. - ANS-Deferred Annuity
Questions and Answers
________ is a health insurance policy that only covers physician services and
procedures. Proves first dollar benefits by the insurer, but low coverage limits. - ANS-
Basic Medical Expense
________ is a health insurance policy that only covers room and board if the insured
stays overnight in a hospital and the miscellaneous expenses that occur because of that
stay. - ANS-Basic Hospital Expense
________ is a health insurance policy that only covers surgeries, surgeons and
anesthesiologists. It provides first dollar benefits by the insurer, but low limits. - ANS-
Basic Surgical Expense
______ is a health insurance policy that offers broad coverage and high benefits for
hospitalization, surgeries, and physician services subject to deductibles and
coinsurance. - ANS-Major Medical Expense
_________ is a type of traditional medical expense insurance designed to reimburse the
policyowner for out of pocket medical expenses. It is characterized by typically low
deductibles (100-500), coinsurance, and stop loss limits. - ANS-Comprehensive Major
Medical
What feature of Major Medical policy requires 100% payment of covered expenses after
the insured's claim cost reaches a certain level? - ANS-Stop Loss
The amount of loss paid by the policyowner before the health insurance policy pays the
claims is known as.. - ANS-Deductible
Mary has a Major Medical policy with a $200 deductible and 80/20 coinsurance
allocation. If she suffers a covered loss of $8200, how much will Mary be required to
pay for this loss? - ANS-$1800
_______ is a health insurance policy that does not have a deductible. The company
pays first when a claim is submitted. - ANS-First Dollar Coverage
Medicare enrollees who want the offset the deductibles and copayments should
purchase - ANS-A Medicare Supplement policy
, The Renewability provision of an MSP or LTC must at least provide the policyowner
rights associated with which of the following? - ANS-Guaranteed Renewable
LTC policies must offer a Free Look period of ___ days. - ANS-30
A poverty stricken 75 year old would use which of the following to cover Medicare
deductibles and copayments? - ANS-Medicaid
A wealthy 75 year old would use which of the following to cover Medicare deductibles
and copayments? - ANS-An MSP
A person who can no longer perform the activities of daily living and will require
custodial care for the rest of his life needs: - ANS-and LTC
LTCs must provide a minimum of how many months of continuous nursing home care?
- ANS-12
If a company markets MSPs, it must offer - ANS-Plan A
An LTC must provide for no less than ________ consecutive months of coverage in a
facility other than an acurat care unit of a hospital. - ANS-12
This policy coordinates with your Major Medical coverage. Once you've reached the
dollar limits of you Major Medical policy, this policy begins to pay 100% of the costs. -
ANS-Dread Disease
Stage 1 of an annuity is the accumulation period. During this period interest earned is -
ANS-Tax deferred
Withdrawals prior to age _______ are taxed and penalized _____. - ANS-59 1/2; 10%
Which of the followin is NOT one of the three options at the end of Stage 1. - ANS-
Withdraw without penalty
__________ allows you to decide how much income you want each month or how long
you need payments - ANS-Annuity Certain
his annuity provides stipulated payments at regular intervals for the life of the annuitant
with no refund provisions once the annuitant dies. The most common use is to build a
tax-deferred sum of money that funds stream of income that you cannot outlive. - ANS-
Life Annuity
A ___________ contract will not pay income benefits until a later date, usually the
annuitant's retirement age. - ANS-Deferred Annuity
