Question 1

If your disability coverage includes a social insurance substitute,then

Accepted Answer

A)  cost of living increases in your Social Security benefits are offset by a reduction in your private benefits.
B)  your disability benefits will be automatically adjusted for changes in the cost of living.
C)  you may receive either private or public benefits but not both.
D)  your private benefits will be greater if you do not qualify for Social Security disability benefits.

Question 2

UCR indicates "unusual care received."

Accepted Answer

A) True 
 B)False

Question 3

"Medigap insurance" is the industry term for commercial insurance that leaves significant areas of needed benefits uncovered.

Accepted Answer

A) True 
 B)False

Question 4

The preferred strategy for holding down the cost of disability income protection is to choose

Accepted Answer

A)  a longer elimination period.
B)  a shorter benefit period.
C)  a less inclusive definition of disability.
D)  a policy with an A+ rating.

Question 5

The elimination or waiting period for disability income- protection is the time between

Accepted Answer

A)  when you apply for membership and when you are admitted into the plan.
B)  when you pay your first premium and when your plan coverage begins.
C)  the onset of the disability and rehabilitation.
D)  the onset of the disability and when coverage for lost income begins.

Question 6

Workers' compensation programs are meant to help pay for medical expenses and lost income resulting from

Accepted Answer

A)  work-related injuries,but not work-related illnesses.
B)  work-related injuries and illnesses.
C)  both work- and non-work-related injuries,but not illnesses.
D)  both work- and non-work-related injuries and illnesses.

Question 7

Under a defined contribution health care plan the employer provides the employee money to purchase health care benefits.

Accepted Answer

A) True 
 B)False

Question 8

Health maintenance organizations typically provide few basic benefits and inadequate major medical coverage.

Accepted Answer

A) True 
 B)False

Question 9

Your choice of physician care will be greater if you join an HMO with

Accepted Answer

A)  a group-staff arrangement.
B)  an individual practice arrangement.
C)  preferred provider arrangement.
D)  an indemnification agreement.

Question 10

The term copayment means that

Accepted Answer

A)  both the private insurer and the government will share the cost of the medical service.
B)  both your private physician and the hospital providing the service must be reimbursed simultaneously.
C)  both you and your insurer will share the cost of the medical service.
D)  both you and your physician will receive reimbursement for the medical expenses.

Question 11

According to Social Security regulations,you were not capable of substantial gainful employment

Accepted Answer

A)  if you cannot earn more than an annually adjusted monthly minimum.
B)  if you cannot earn at least 60% of what you earned in your pre-injury employment.
C)  if you cannot earn at least 40% of what you earned in your pre-injury employment.
D)  were unable to perform the main duties of any occupation you were fit for by training or experience.

Question 12

Hospital indemnity insurance

Accepted Answer

A)  pays a fixed dollar amount for each day you remain in the hospital.
B)  provides the provider of the service a direct payment up to a set daily maximum.
C)  guarantees you certain specified services regardless of the daily cost.
D)  guarantees you all hospital services regardless of cost.

Question 13

A "living will"

Accepted Answer

A)  is also know as an irrevocable living trust.
B)  automatically redirects assets to your beneficiaries as you age.
C)  is a medical directive indicated the type of life support you wish to receive should you be incapacitated.
D)  transfers your assets to your beneficiaries before you die in the event you become incapacitated.

Question 14

"Major medical" insurance typically includes

Accepted Answer

A)  first-dollar coverage on all medical expenditures.
B)  reimbursement for hospital expenses.
C)  coverage for a restricted list of major injuries and illnesses.
D)  extensive dollar coverage after health care expenses exceed significant deductibles.

Question 15

Medigap policies typically cover custodial nursing home care.

Accepted Answer

A) True 
 B)False

Question 16

You may be eligible for Social Security disability income payments if you can demonstrate that

Accepted Answer

A)  for a period of at least six months you will not be able to work in the occupation for which you were trained.
B)  for a period of at least one year you will not be able to work in the occupation for which you were trained.
C)  your disability is total and will last for at least a year or result in death.
D)  your disability is total and permanent.

Question 17

"Managed care" is the current term applied to service-benefit type coverage.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements concerning the financial stability of health care insurers is false?

Accepted Answer

A)  There has never been a financial collapse of a health insurance company.
B)  Federally-qualified HMOs must carry insurance to cover the unpaid bills of patients in the event they become insolvent.
C)  Private firms rate the financial stability of commercial health care insurers.
D)  In many states commercial health insurers are protected by state guarantee funds.

Question 19

There is an earnings test for those who apply for Social Security disability benefits.

Accepted Answer

A) True 
 B)False

Question 20

Pension plans may provide immediate retirement benefits for disabled previous employees.

Accepted Answer

A) True 
 B)False

Exam 14: Health Care and Disability Insurance: Protecting Your Earning Capacity

Your choice of physician care will be greater if you join an HMO with

Correct AnswerverifiedShow Answer

"Medigap insurance" is the industry term for commercial insurance that leaves significant areas of needed benefits uncovered.

Correct AnswerverifiedShow Answer

According to Social Security regulations,you were not capable of substantial gainful employment

Correct AnswerverifiedShow Answer

The term copayment means that

Correct AnswerverifiedShow Answer

Medigap policies typically cover custodial nursing home care.

Correct AnswerverifiedShow Answer

UCR indicates "unusual care received."

Correct AnswerverifiedShow Answer

Pension plans may provide immediate retirement benefits for disabled previous employees.

Correct AnswerverifiedShow Answer

The elimination or waiting period for disability income- protection is the time between

Correct AnswerverifiedShow Answer

The preferred strategy for holding down the cost of disability income protection is to choose

Correct AnswerverifiedShow Answer

Under a defined contribution health care plan the employer provides the employee money to purchase health care benefits.

Correct AnswerverifiedShow Answer

Hospital indemnity insurance

Correct AnswerverifiedShow Answer

"Major medical" insurance typically includes

Correct AnswerverifiedShow Answer

A "living will"

Correct AnswerverifiedShow Answer

Health maintenance organizations typically provide few basic benefits and inadequate major medical coverage.

Correct AnswerverifiedShow Answer

You may be eligible for Social Security disability income payments if you can demonstrate that

Correct AnswerverifiedShow Answer

"Managed care" is the current term applied to service-benefit type coverage.

Correct AnswerverifiedShow Answer

Workers' compensation programs are meant to help pay for medical expenses and lost income resulting from

Correct AnswerverifiedShow Answer

If your disability coverage includes a social insurance substitute,then

Correct AnswerverifiedShow Answer

Which of the following statements concerning the financial stability of health care insurers is false?

Correct AnswerverifiedShow Answer

There is an earnings test for those who apply for Social Security disability benefits.

Correct AnswerverifiedShow Answer

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