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c. $1,000 to $2,500
d. $1,500 to $2,000
e. $3,000 to $5,000
36. One drawback of long-term-care insurance is its:
a. high annual premiums.
b. overlap with Medicare.
c. inability to cover custodial care.
d. short duration.
e. non-renewability clause.
37. Long-term care is a term used to describe:
a. the inflation protection riders in the insurance policy.
b. the delivery of medical and personal care to persons with chronic medical conditions who are not in a hospital.
c. the coverage for a serious illness or accident that prevents an insured person from working for an extended period.
d. an extended period of hospital stay due to a serious illness or accident.
e. compensation provided to workers who are injured on the job or become ill through work-related causes.
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38. A policy provision ensuring continued insurance coverage for the insured’s lifetime as long as the premiums continue
to be paid is known as:
a. a policy exclusion.
b. co-insurance.
c. a co-payment.
d. benefits duration.
e. renewability.
39. The insurance designed to help with nursing home, assisted living community, or in-home care due to chronic illness
is called:
a. Medicare.
b. a major medical plan.
c. a comprehensive major medical plan.
d. nursing home care.
e. long-term care.
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40. Which of the following statements regarding long-term-care insurance is true?
a. Long-term-care policies do not reimburse the insured for the cost of services incurred on a day-to-day basis.
b. The maximum duration of benefits is only 1 year.
c. There is no waiting period to receive the benefits.
d. Most long-term-care insurance policies are non-renewable in nature.
e. Many policies offer inflation protection riders for an additional premium.
41. In order to qualify for disability insurance under Social Security, a person must be:
a. unable to carry out the duties of the current job.
b. unable to carry out the duties of any job.
c. ill for at least 3 months.
d. expected to be disabled for at least 1 month.
e. expected to be disabled for no more than 6 months.
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42. Disability income policies usually have a(n) _____, which is a time delay from the date of the issuance of the policy
until benefit privileges are activated.
a. waiting period
b. probationary period
c. elimination period
d. internal limit period
e. outer limit period
43. Which of the following changes would tend to increase the premium on a disability policy?
a. A shorter elimination period
b. Use of “any occupation” definition of disability instead of “own occupation to which one is reasonably suited”
c. Decreasing the benefit level to 50% from 66% of prior earnings
d. Decreasing the payment period until age 65 to a maximum of 2 years
e. Mandatory disability insurance in which the employer pays the entire premium
44. Michael’s estimated current monthly take-home pay is $4,500. His total existing monthly benefit is $2,950. Michael’s
estimated monthly disability benefit is:
a. $1,550.
b. $550.
c. $2,950.
d. $7,450.
e. $4,500.
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49. Medicare Part B covers:
a. post-hospital medical services.
b. therapy, rehabilitation, and home health care.
c. inpatient hospital services.
d. imaging, laboratory tests, and prosthetic devices.
e. dental care.
50. _____ is a health care plan in which subscribers/users contract with the provider organization, which uses a designated
group of providers meeting specific selection standards to furnish health care services for a monthly fee.
a. An indemnity plan
b. A fee-for-service plan
c. A managed care plan
d. A supplementary medical insurance plan
e. Medicare
51. A good health insurance plan embodies more than financing medical expenses, lost income, and replacement services;
it incorporates:
a. Social Security benefits.
b. flexibility in insurance premium payment on the lapse of the insurance policy.
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c. lifetime limited dollar insurance coverage on pre-existing conditions.
d. other means of risk reduction such as risk avoidance.
e. life insurance.
52. Dependent children _____ will usually be covered by their parents’ health insurance policy.
a. regardless of age
b. up to a stated maximum age
c. up to two in number
d. regardless of their employment
e. who are married, as well as their spouses and children,
53. If you are laid off, your group health insurance:
a. can be continued if the employer chooses to.
b. must be continued if you pay the premiums.
c. must be continued and your ex-employer pays the premiums.
d. is continued and is paid by Social Security.
e. is immediately terminated.
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54. A coordination of benefits provision in a health care policy _____ by collecting benefits in multiple payments for
health care.
a. prohibits collecting more than 100% of covered charges
b. allows the collection of only 75% of covered charges
c. prohibits collecting more than 80% of covered charges
d. allows the collection of only 50% of covered charges
e. allows the collection of 200% of covered charges
55. A(n) _____ covers the cost of visits to a doctor’s office or for a doctor’s hospital visits, including consultation with a
specialist.
a. surgical expense insurance
b. hospitalization insurance policy
c. elective surgery insurance
d. regular medical expense insurance
e. hospital income policy
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56. The _____ represents the initial amount that’s not covered by the policy and thus must be paid by the insured.
a. deductible
b. co-insurance
c. copayment
d. premium
e. internal limit
57. Medicare and Medicaid cover:
a. between 50 and 100% of the total cost of long-term care.
b. all the costs related to long-term care.
c. between 0 and 50% of the total cost of long-term care.
d. the average cost of long-term care.
e. none of the costs related to long-term care.
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58. The ACA’s provisions relating to long-term care include the Community Living Assistance Services and Support
Program (CLASS), which will be administered by:
a. the U.S. Department of Health and Human Services.
b. private insurance providers.
c. the Social Security Administration.
d. the government.
e. consumers.
59. Disability income insurance will provide income to a disabled or ill person:
a. without a waiting period.
b. with unlimited funds for years.
c. with a waiting period before income is received.
d. with payments made to the recipient up to age 70.
e. only if the insured is unable to work any job.