Insurance MCQ

Purchasers of long-term care insurance typically have a choice of daily cash benefits that are paid A. Over a maximum period of years, or for the insured's lifetime. B. In a lump sum to the care provider, or to the insured. C. Through the purchase of an annuity, or in a lump sum. D. Through many payment disbursement options, which are similar to life insurance. Answer: A

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? A. Automatic increase B. Future increase option C. Guaranteed insurability D. Cost of living adjustment Answer: A

Long-term care policies have physician certification (gatekeeper) provisions that determine A. Renewal and refund requirements for nonpayment of premium. B. Whether the insured is eligible for benefits under the policy. C. The underwriting criteria for policy renewal. D. The criteria for approved nursing care facilities. Answer: B

Payment of benefits under the Social Security disability income program requires a waiting period of what length? A. Two months B. Five months C. Nine months D. Twelve months Answer: B

Which one of the following statements best describes Medicaid. A. It is a federal program that provides long-term care benefits to anyone who is enrolled in Medicare. B. It is a social insurance program that provides medical expense benefits to certain categories of persons, regardless of their income and assets. C. It is a means-tested federal-state welfare program that covers the medical expenses of low income persons. D. It is a series of state programs designed to make medical expense coverage more readily available to all state residents. Answer: C

Purchasers of long-term care insurance typically have a choice of daily cash benefits that are paid A. Over a maximum period of years, or for the insured's lifetime. B. In a lump sum to the care provider, or to the insured. C. Through the purchase of an annuity, or in a lump sum. D. Through many payment disbursement options, which are similar to life insurance. Answer: A

With a long-term care insurance plan, an elimination period A. Results in reduced benefits for 180 days. B. Functions as a "time deductible." C. Helps protect against inflation. D. Is the time during which a policy cannot be canceled. Answer: B

A point-of-service (POS) plan is a hybrid healthcare plan that has characteristic of which two other types of healthcare plans? A. A preferred provider organization (PPO) and an exclusive provider organization (EPO) B. A health maintenance organization (HMO) and a preferred provider organization (PPO) C. An indemnity plan and a health maintenance organization (HMO) D. A major medical plan and Medicare Answer: B

Part B of original Medicare (medical insurance) provides benefits for which one of the following? A. Inpatient hospital care B. Outpatient prescription drug coverage C. Hospice care D. Doctors' services Answer: D

Kevin recently purchased a long-term disability income policy. The policy states that he can renew the coverage until age 65 as long as he is gainfully employed. However, the insurer reserves the right to raise the premium at renewal. This policy is considered A. Optionally renewable. B. Guaranteed renewable. C. Conditionally renewable. D. Noncancelable. Answer: B

Which one of the following is true with regard to how long-term care insurance policies deal with inflation in the cost of long-term care services? A. Virtually no long-term care insurance policies help protect against inflation. B. Most long-term care policies offer "guaranteed renewability." C. Some plans allow insureds to purchase additional amounts of insurance in the future without evidence of insurability. D. Long-term care insurers negotiate long-term, fixed price contracts with service providers. Answer: C

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 percentage of their medical expenses after the satisfaction of a deductible. This is an example of A. A preferred provider organization plan. B. A health maintenance organization plan. C. An indemnity plan. D. A point-of service plan. Answer: C

Which one of the following statements about original Medicare is true? A. Some people under age 65 may be eligible for coverage. B. Part B is financed solely by premiums paid by voluntarily enrolled persons. C. Part A provides benefits for long-term custodial care. D. It is a means-tested welfare program Answer: A

Long-term care insurance typically covers A. Skilled nursing home care only. B. Home healthcare but only if provided by nonfamily members. C. General services that help the insured live independently. D. Skilled nursing home care and custodial care. Answer: D

Some older people are in poor health and require long-term care in a nursing facility. However, the current Medicare program A. Is not expected to continue long-term nursing care benefits beyond the year 2010. B. Is not expected to continue long-term nursing care benefits beyond the year 2025. C. Does not cover care in a nursing facility for extended periods of time. D. Covers only custodial care in a nursing facility. Answer: C

Qualification for Social Security disability income benefits requires objective medical evidence that a worker's impairment meet which one of the following requirements with respect to duration? A. Be expected to eventually result in death B. Be expected to last at least 24 consecutive months C. Be expected to last at least 12 consecutive months or to result in death D. Be expected to last until the earlier of death or the worker's eligibility for Social Security retirement benefits Answer: C. Be expected to last at least 12 consecutive months or to result in death