Unit 15

Question 1

Which of the following statements pertaining to health insurance policy premium factors is CORRECT?

(A) A “policy fee” is another term for policy premium.
(B) A policy owner has an individual health plan; therefore,the policy is most likely a participating policy.
(C) Age and sex of the individual insureds would have the most influence on a group health insurance policy’s experience rating refund credit.
(D) Health insurance policies are paid for on a year-by-year basis and are subject to periodic increases.

Answer 1

(D) Health insurance policies are paid for on a year-by-year basis and are subject to periodic increases.

Question 2

All of the following are basic forms of health insurance coverage EXCEPT:

(A) medical expenses
(B) limited pay health
(C) disability income
(D) accidental death and dismemberment

Answer 2

(B) limited pay health

Question 3

Which of the following premiums factors is unique to health insurance (as opposed to life insurance)?

(A) Age
(B) Sex
(C) Morbidity
(D) Interest

Answer 3

(C) Morbidity

Question 4

Which of the following statements regarding health insurance is CORRECT?

(A) Once issued, health insurance policies cannot be cancelled by the insurer.
(B) There are many premium-payment options available with health insurance policies.
(C) Medical expense policies reimburse the insured for the costs of medical care.
(D) Disability income policies are designed to pay hospital expenses associated with a disability.

Answer 4

(C) Medical expense policies reimburse the insured for the costs of medical care.

Question 5

Assume a health insurance contract states that it will pay $350 a month to be insured, should she become totally disabled. Which term most aptly defines this kind of contract?

(A) Participating
(B) Valued
(C) Inclusive
(D) Reimbursement

Answer 5

(B) Valued