Health and Disabilty Insurance.docx

Health and Disabilty Insurance. True / False Questions   1. A job tends to have less of a long-term commitment to a field than a career.  TRUE 2. A possible opportunity cost associated with career advancement is a need to relocate your household. TRUE 3. Libraries usually have a variety of information sources for career planning and job exploration.  TRUE 4. Education, training, and the demands for a person's skills are major influences on salary.  TRUE 5. A tax-exempt employee benefit is usually more advantageous than a tax-deferred benefit.  TRUE   6.The purpose of a cover letter is to determine if a company has jobs available. FALSE 7.A telephone interview is reserved for only the finalists in a job search.  FALSE Multiple Choice Questions  8.Compared to a job, a career:  A. is often less financially rewarding. B. requires minimum training. C. demands regular updating of knowledge. D. has limited opportunities for advancement. 9.A(n) ____________ is an employment position that is obtained mainly to earn money.  A. career B. job C. internship D. apprenticeship E. cooperative experience  10.A commitment to a profession that requires continued training and offers a clear path for occupational growth is a(n):  A. apprenticeship. B. job. C. internship. D. career. E. cooperative employment experience. 11.Natural abilities that people possess are:  A. interests. B. aptitudes. C. attitudes. D. survival skills. E. occupation techniques. 12.The abilities to work well with numbers, possess problem-solving skills, and have physical dexterity are examples of:  A. interests. B. survival skills. C. aptitudes. D. occupational attitudes. E. on-the-job training. 13.Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of:  A. $694. B. $528. C. $500. D. $360. E. $140.   14.Tax-deferred employee benefits are  A. not subject to federal income tax. B. not subject to state income tax. C. taxed at some future time. D. are taxed at a special rate. 15.The purpose of a cover letter is to:  A. obtain career planning information. B. request a reference for a job. C. develop résumé information. D. research a career area. E. apply for a job. 16.An interview designed to reduce the number of candidates for a position to a workable size is a(n) ____________ interview.  A. screening B. informational C. selection D. contact E. followup 17.Austin Guess has written his resume and had it checked by his career placement center for errors. He plans on sending it to three companies he has identified as having job openings. Which step in the career planning process is Austin completing?  A. Assess and research personal goals and abilities B. Evaluate the employment market to identify specific employment opportunities C. Develop a resume and cover letter to apply for specific positions D. Interview for specific positions and assess the interview performance E. Evaluate financial and other factors of positions offered 18.Jason Liang has gotten three job offers. He is now looking at the benefits packages of all three to see what he likes and doesn't like about all three. Which step in the career planning process is Jason completing?  A. Assess and research personal goals and abilities B. Evaluate the employment market to identify specific employment opportunities C. Develop a resume and cover letter to apply for specific positions D. Interview for specific positions and assess the interview performance E. Evaluate financial and other factors of positions offered   19.Jennifer Drofsab wants to gain some employment experience so when she is ready to start a career she has some things to offer a company. She has decided to work 20 hours a week for a local accounting firm answering the phone and assisting the partners in completing tax returns. Which of the following employment experience strategies is she pursuing?  A. Part-Time Employment B. Volunteer Work C. Internship D. Campus Project E. Cooperative Education Program 20.Tara Guest wants to gain some needed experience so when she is ready to start a career she has some things to offer a company. She has decided to help the Edmond Historical Society run their booths that explain the part Edmond played in the Oklahoma Land Run for Edmond school children. Which of the following employment experience strategies is she pursuing?  A. Part-Time Employment B. Volunteer Work C. Internship D. Campus Project E. Cooperative Education Program  21.Lisa Trotter wants to gain some needed experience so when she is ready to start a career she has some things to offer a company. She has decided to help with the homecoming parade for the University of Central Oklahoma where she goes to school full time. Which of the following employment strategies is she pursuing?  A. Part-Time Employment B. Volunteer Work C. Internship D. Campus Project E. Cooperative Education Program   22.Lori Burroughs wants to gain some needed experience so when she is ready to start a career she has some things to offer a company. She has talked to the career placement center at her university. They tell her she can get a job with a local company for the summer and earn college credit while working. Which of the following employment strategies us she pursuing?  A. Part-Time Employment B. Volunteer Work C. Internship D. Campus Project E. Cooperative Education Program   True / False Questions   23. The United States has the lowest per capita medical expenditures of any industrialized country in the world. FALSE 24.The best way to avoid the high cost of illness is to stay well. TRUE 25.The number of Americans without basic health insurance has been decreasing since the 1980s. FALSE  9. Group health insurance plans comprise about 90 percent of all health insurance issued by health and life insurance companies.  TRUE   10. Group health insurance will cover you but not your immediate family.  FALSE   14. Very few group health policy contracts have a coordination of benefits provision.  FALSE   16. A good health insurance plan should offer basic coverage for hospital and doctor bills.  TRUE   18. More people have hospital insurance than any other kind of health insurance.  TRUE   21. Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance.  TRUE   22. A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin.  TRUE   26. Physician expense insurance is expensive, therefore, it should be avoided.  FALSE   27. A coinsurance provision requires the policyholder to share the expenses beyond the deductible amount.  TRUE   28. A stop-loss provision requires the policyholder to pay up to a certain amount, after which the insurance company pays 100 percent of all remaining covered expenses.  TRUE   29. Comprehensive major medical insurance is a type of major medical insurance that has a very high deductible amount.  FALSE   30. A hospital indemnity policy pays benefits only when you are hospitalized and only to the hospital where the care was provided.  FALSE   31. The hospital indemnity policy is a good substitute for basic or major medical protection.  FALSE   32. Dread disease and cancer policies are usually very good values.  FALSE   33. Long-term care insurance was virtually unknown 25 years ago, but now it is growing faster than any other form of insurance.  TRUE   34. Blue Cross plans provide for surgical and medical services performed by physicians.  FALSE   35. Blue Shield plans provide hospital care benefits on essentially a "service type" basis.  FALSE   36. Preferred Provider Organizations combine the best elements of the fee-for-service and HMO systems.  TRUE   37. Public opinion polls consistently show that Americans are happy with the nation's health care system.  FALSE   38. Part A of Medicare pays for all covered services for inpatient hospital care after you pay a single annual deductible.  TRUE   39. Medigap insurance, intended to supplement Medicare, is sold and serviced by the federal government.  FALSE   40. Medicaid is administered by each state within certain broad federal requirements and guidelines.  TRUE   41. Medicare does not cover the expenses of private-duty nursing care.  TRUE   42. Two sources of government health insurance are Medicare and Medicaid.  TRUE   43. Medicare has two parts: hospital insurance (Part A) and medical insurance (Part B).  TRUE   44. Medicare hospital insurance (Part A) is financed from a portion of the Social Security tax.  TRUE   45. To get Medicare medical insurance (Part B) you must sign for it and pay a monthly premium.  TRUE   46. Skilled nursing care beyond 100 days per benefit period is approved and covered by Medicare.  FALSE   47. Medicare covers routine checkups, dental care, most immunizations, cosmetic surgery, routine foot care, eyeglasses, and hearing aids.  FALSE   48. Medicare covers the cost of care received outside the United States, Canada, and Mexico.  FALSE   49. Medicare was never intended to pay all medical costs.  TRUE   50. Medicare Supplement insurance is a government-sponsored program.  FALSE   51. Title XIX of the Social Security Act provides for a program of medical assistance to certain low-income individuals and families.  TRUE   52. Medicaid is financed by both state and federal funds.  TRUE   53. Very few members of the Medicaid population are also covered by Medicare.  FALSE   54. Medicaid differs from Medicare because eligibility for Medicaid depends on having very low income and assets.  TRUE   55. Because Medicaid coverage is very limited, people using it need to purchase supplemental insurance.  FALSE   56. The Department of Health and Human Services maintains one of the richest and most reliable sources of information on the Internet.  TRUE   57. Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy.  TRUE   58. Once a person is eligible, Medicaid provides more benefits than does Medicare.  TRUE   59. Just about every worker is covered by disability income insurance.  FALSE   60. Basically, the word disability has only one definition.  FALSE   61. Most people are more likely to lose their income due to death than due to disability.  FALSE   62. Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job.  TRUE   63. Disability benefits begin on the first day you are disabled.  FALSE   64. Generally, disability income policies with shorter waiting periods have lower premiums.  FALSE   65. You should seek a disability policy that pays benefits for life.  TRUE   66. Look for a disability income policy that waives premiums while you are disabled.  TRUE   67. The premium for noncancelable and guaranteed renewable coverage is higher, but the coverage is well worth the extra cost.  TRUE   68. Very few employers provide disability income protection for their employees through the group insurance plans.  FALSE   69. Unfortunately, most salaried workers in the United States do not participate in the Social Security programs.  FALSE     Multiple Choice Questions   70. What has become one of the important issues of our time?  A. Affordable health care B. Affordable housing C. Affordable automobiles D. Affordable vacations   71. Which country has the highest per capita medical expenditures of any industrialized country in the world?  A. Australia B. Britain C. Canada D. Denmark E. U.S.A.   72. Which one(s) of the following groups has (have) undertaken innovative activities to contain the costs of health care?  A. Employers B. labor unions C. health insurers D. Consumers E. All of the choices have undertaken activities.   73. Which of the following is an innovative way concerned groups are containing health care costs?  A. Incentives to encourage preventive care B. Encouragement of prepaid group practices C. Establishment of community education programs so people can learn to take better care of themselves D. Encouragement by doctors to pay cash for routine medical costs E. All of the choices are innovative ways concerned groups are containing health care costs   74. What are some possible reasons for high and rising costs of health?  A. the use of sophisticated and high-priced equipment B. medical personnel who command high earnings C. innovative but costly treatment for some illnesses D. the increasing number and longevity of elderly people E. All are possible reasons for high health care costs   75. What can you do to reduce your health care costs?  A. Stay well. B. Gain a little extra weight. C. Smoke and drink. D. Live dangerously. E. Don't seek medical care.   76. Why have a growing number of students been without health insurance?  A. Because insurance companies refuse to insure them B. Because students are young and healthy C. Because students don't need health insurance D. Because students don't care if they get sick E. Because an older student population is not covered by family policies   77. Health insurance includes:  A. life insurance. B. Disability insurance. C. personal liability insurance. D. An annuity. E. An endowment.   78. Most health insurance policies in the United States are sold to:  A. victims of communicable diseases. B. individuals with families. C. single individuals with no dependents. D. Employees and their dependents. E. Employers, who in turn offer the benefits to employees.   79. Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?  A. group health B. individual health C. hospital expense D. surgical expense E. physician's expense   80. Which type of health insurance policy may cover all of your health insurance needs or may deny benefits if you lose your job?  A. group health B. individual health C. Basic health D. Comprehensive medical E. Disability income   81. Which type of health insurance pays part or all of hospital bills for room, board, and other charges?  A. surgical expense B. hospital expense C. physician's expense D. Basic health E. major medical   82. Harry Mayhue gets a bad case of the flu and ends up in the hospital for three days. Which part of his basic insurance coverage should help pay for this stay?  A. Hospital Expense Insurance B. Surgical Expense Insurance C. Physician Expense Insurance D. Major Medical Expense Insurance E. None of the choices   83. Joe Johnson needs surgery for appendicitis. Which part of his basic insurance coverage should help pay for this surgery?  A. Hospital Expense Insurance B. Surgical Expense Insurance C. Physician Expense Insurance D. Major Medical Expense Insurance E. None of the choices   84. Julie Cumbie is playing softball and gets hurt sliding into second base. She gets an x-ray at her doctor's office to make sure her ankle isn't broken. Which part of her basic insurance coverage should help pay for this x-ray?  A. Hospital Expense Insurance B. Surgical Expense Insurance C. Physician Expense Insurance D. Major Medical Expense Insurance E. None of the choices   85. Jamal Walker gets infected with the West Nile Virus and ends up in the hospital for 6 weeks. What part of his insurance policy would be the most useful for helping to pay for this?  A. Hospital Expense Insurance B. Surgical Expense Insurance C. Physician Expense Insurance D. Major Medical Expense Insurance E. None of the choices   86. Nathanial Drummond has three different insurance policies. He has been injured in an accident and has incurred $30,000 in medical bills. There is a clause in all of his insurance contracts the makes sure that he receives no more than $30,000 in payments from his insurance companies. This clause is called:  A. Coordination of benefits B. Deductible C. Coinsurance D. Stop-Loss provisions E. Major medical expense insurance   87. Sophie Bennett must pay $500 in doctor's visits before her insurance company will make any payments for doctors visits. This is called:  A. Coordination of benefits B. Deductible C. Coinsurance D. Stop-Loss provision E. Major medical expense insurance   88. Sophie Bennett has met the deductible for her doctor's visits. However, her insurance company requires her to pay 20% of all expenses above this deductible amount. This clause is called:  A. Coordination of benefits B. Add on expenses C. Coinsurance D. Stop-Loss provision E. Major medical expense insurance   89. Sophie Bennett has met the deductible for her doctor's visits. She has also paid out 20% of all expenses above this deductible amount. She has paid a total of $5000 in doctor's visits. At this point there is a clause in her insurance contract that make her insurance company pay for 100% of all expenses. What clause is this likely to be?  A. Coordination of benefits B. Add on expenses C. Coinsurance D. Stop-Loss provision E. Major medical expense insurance   90. Raymond Carter has a type of medical insurance that has a very low deductible and pays for hospital, surgical, medical and other bills under one plan. What is this called?  A. Comprehensive Major Medical Insurance B. Hospital Indemnity Policy C. Long Term Care Insurance D. Cancer Insurance Policy E. None of the choices   91. Chris Jones has an insurance policy that pays benefits in cash when he is hospitalized. What type of insurance would this be?  A. Comprehensive Major Medical Insurance B. Hospital Indemnity Policy C. Long Term Care Insurance D. Cancer Insurance Policy E. None of the choices   92. Karen Blumenthall was seriously injured in a car accident and is paralyzed from the waist down. Luckily she has an insurance policy that will pay for someone to come in and help with her day to day activities such as bathing, dressing and household chores. What type of insurance policy is this likely to be?  A. Comprehensive Major Medical Insurance B. Hospital Indemnity Policy C. Long Term Care Insurance D. Cancer Insurance Policy E. None of the choices   93. Joan Wilder receives a phone call from a salesman who tries to sell her an insurance policy by scaring her about her high risk of death from this disease. She knows that this type of insurance policy has a notoriously poor value so she politely declines. What type of insurance policy did this salesman likely try to sell her?  A. Comprehensive Major Medical Insurance B. Hospital Indemnity Policy C. Long Term Care Insurance D. Cancer Insurance Policy E. None of the choices   94. Which of the following should you ask about in a long term care insurance policy?  A. The Daily Benefit B. The Benefit Period C. The Policy Limit D. The Elimination Period E. All of the choices are things you should ask about   95. Marcia Fuller has an insurance policy that lists that she and her three daughters, ages 6 10 and 12, are covered under this policy. Which provision in her insurance policy defines this?  A. Eligibility B. Assigned Benefits C. Benefit Limits D. Guaranteed Renewable E. Exclusions and Limitations   96. Dean Thomas has an insurance policy that cannot be cancelled unless he fails to pay his premium. What provision in his insurance policy would specify this?  A. Eligibility B. Assigned Benefits C. Benefit Limits D. Guaranteed Renewable E. Exclusions and Limitations   97. Darren Chase has an insurance policy that tells him he can only stay in the hospital for 60 days during the year. What provision in his insurance policy would specify this?  A. Eligibility B. Assigned Benefits C. Benefit Limits D. Guaranteed Renewable E. Exclusions and Limitations   98. Benjamin Northcutt has an insurance policy that does not cover cosmetic surgery like the nose job he would like to have. What provision in his insurance policy would specify this?  A. Eligibility B. Assigned Benefits C. Benefit Limits D. Guaranteed Renewable E. Exclusions and Limitations   99. Which type of health insurance pays part or all of the surgeon's fee for an operation?  A. surgical expense B. hospital expense C. physician's expense D. Basic expense E. major medical expense   100. Which type of health insurance pays for physician's care that does not involve surgery?  A. surgical expense B. hospital expense C. physician's expense D. Basic expense E. major medical expense   101. A good health insurance plan should:  A. provide at least one year's hospital room and board in full. B. provide at least $2 million lifetime maximum for each family member. C. pay 100 percent for out-of-hospital expenses. D. offer basic coverage for hospital and doctor bills.   102. Which type of insurance is usually bought in combination with hospital and surgical insurance?  A. Disability income B. Comprehensive major medical C. major medical expense D. hospital indemnity E. physician's expense   103. Which type of insurance protects against the large expenses of a serious injury or a long illness?  A. Disability income B. major medical expense C. hospital indemnity D. physician's expense E. interim medical   104. A good health insurance plan should:  A. offer basic coverage for hospital and doctor bills. B. provide at least 120 days' total room and board in full. C. provide at least $1 million lifetime maximum for each family member. D. impose no unreasonable exclusions. E. offer all of these.   105. Which one of the following provisions requires that the policyholder pay a basic amount before the policy benefits begin?  A. Coinsurance B. stop loss C. Deductible D. self insurance E. incontestable   106. ____________ is a type of major medical insurance that has a very low deductible amount and is offered without any separate basic plan.  A. Comprehensive major medical insurance B. Major Medical expense insurance C. Physician's expense insurance D. Hospital expense insurance E. Surgical expense insurance   107. Which health insurance policy pays benefits only when you are hospitalized, but pays these benefits in cash which you can use as you like?  A. hospital indemnity B. interim or short-term C. Disability income D. Comprehensive major medical E. major medical expense   108. Which type of health policy is like buying a lottery ticket?  A. major medical expense insurance B. Comprehensive expense insurance C. interim expense insurance D. hospital indemnity insurance E. physician's expense insurance   109. Dental expense insurance provides reimbursement for:  A. oral examinations. B. fillings. C. Extractions. D. inlays. E. All of the choices provide reimbursement.   110. According to your textbook, supplemental hospital indemnity plans:  A. are almost always excellent buys. B. should never be purchased. C. do not justify the premium cost. D. should be purchased only by older people. E. are meant for couples with two or three children.   111. Which type of health insurance is simply a bad buy?  A. Individual health insurance B. Group health insurance C. Dread disease and cancer policy D. Dental insurance E. Vision insurance   112. Which of the following is true?  A. Physician expense insurance coverage normally includes visits to the doctor's office, x-rays, and lab tests. B. Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance. C. A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin. D. All of the choices are true.   113. Which of the following is false?  A. A coinsurance provision requires the policyholder to share the expenses beyond the deductible amount. B. A stop-loss provision requires the policyholder to pay up to a certain amount, after which the insurance company pays 100 percent of all remaining covered expenses. C. Comprehensive major medical insurance is a type of major medical insurance that has a very high deductible amount. D. All of the choices are true.   114. In choosing health insurance, ideally, you should:  A. get a basic plan and a major supplementary plan. B. get dental and vision plans. C. buy dread disease and cancer insurance plans. D. purchase nursing home insurance. E. purchase accident insurance.   115. Which type of insurance is probably the neglected form of available insurance protection?  A. life B. liability C. Disability D. Car E. home and property   116. Which plan provides benefits for surgical and medical services performed by physicians?  A. Blue Cross B. Blue Shield C. Medicare D. Medicaid E. HMO   117. Health insurance is available from:  A. private insurance companies. B. Blue Cross and Blue Shield. C. HMOs. D. PPOs. E. All of the choices offer health insurance.   118. Which one of the following is a source of health insurance?  A. fraternal organizations B. trade unions C. government programs such as Medicare D. Health Insurance Industry Association   119. Most private insurance companies sell health insurance policies to:  A. individuals. B. families. C. Employers. D. Employees.   120. Which plan provides hospital care benefits on essentially a "service type" basis?  A. Blue Cross B. Blue Shield C. managed care D. Medicare E. Medicaid   121. Which health care institution directly employs or contracts with selected medical care specialists to give you health care services in exchange for a fixed, prepaid monthly premium?  A. Blue Cross B. Blue Shield C. Medicare D. Medicaid E. HMO   122. Hospital insurance Part A. and medical insurance Part B. are characteristics of:  A. Blue Cross. B. Blue Shield. C. Medicare. D. Medicaid. E. HMO.   123. What is covered by Medicare?  A. intermediate and custodial nursing care B. out-of-hospital prescription drugs C. private-duty nursing D. physician charges above Medicare's approved amount E. None of the choices are covered   124. Which health care plan is administered by each state within certain broad federal requirements and guidelines?  A. Blue Cross B. Blue Shield C. Medicare D. Medicaid E. HMO   125. Hospital insurance (Part A) of Medicare is financed from part of the ____________ taxes.  A. state income B. federal excise C. individual income D. Corporate income E. Social Security   126. Medigap is sold or serviced by:  A. Medicare. B. Medicaid. C. private insurance companies. D. Health Care Financing Administration. E. National Institutes of Health.   127. Which one of the following is a correct statement about the nation's health care system?  A. Most Americans are very satisfied with the nation's health care system. B. Most Americans are somewhat satisfied. C. Most Americans don't care one way or the other. D. Americans are unhappy with our health care system. E. All Americans enjoy the best health care available anywhere in the world.   128. Which one of the following is a source of government health insurance?  A. Blue Cross B. Blue Shield C. Medicare D. HMO E. PPO   129. Which one of the following is a source of government health insurance?  A. Blue Cross B. Blue Shield C. National Institutes of Health D. HMO E. Medicaid   130. Medicare, a federal health insurance program was established in 1965 for:  A. people 65 or older. B. people of any age with permanent kidney failure. C. people with certain disabilities. D. all of the choices.   131. Jose Gonzales just turned 65 this year. He should apply for Medicare benefits at a local:  A. office of the National Institutes of Health. B. IRS office. C. Social Security office. D. county medical hospital. E. None of the choices.   132. Hospital insurance is which part of Medicare?  A. Part A B. Part B C. Part C D. Part D E. None of the choices   133. Medical insurance is which part of Medicare?  A. Part A B. Part B C. Part C D. Part D E. None of the choices   134. Hospital insurance (Part A) of Medicare helps pay for:  A. inpatient hospital care. B. inpatient care in a skilled nursing facility. C. home health care. D. hospice care. E. all of the choices.   135. Medicare medical insurance (Part B) helps pay for:  A. inpatient hospital care. B. doctors' services and other medical services and supplies not covered by hospital insurance. C. home health care. D. hospice care. E. none of the choices.   136. Medicare medical insurance (Part B) for people 65 or over is:  A. mandatory. B. financed by corporations. C. voluntary, and you must sign up for coverage. D. state supported and partially funded by the National Institutes of Health. E. None of the choices.   137. Which of the following is correct about Medigap or MedSup insurance?  A. It is sold and serviced by the federal government. B. It is sold and serviced by the state government. C. It is sold and serviced by both the federal and state governments. D. Private insurance companies sell Medicap Insurance policies. E. None of the choices.   138. Which of the following statement is correct about Medicaid:  A. The Social Security Act created Medicaid in 1965. B. Medicaid is a program of medical assistance to certain low-income individuals and families. C. Medicaid is administered by each state within certain federal guidelines. D. Medicaid if financed by both state and federal funds. E. All of the statements are correct.   139. Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?  A. Comprehensive major medical B. major medical expense C. physician's expense D. Disability income E. surgical expense   140. Which health care program is administered by the Centers for Medicare and Medicaid, Services, a federal agency?  A. Blue Cross B. Blue Shield C. Medicare D. Medicaid E. HMO   141. Because you are young and healthy now, you may overlook the very real need for:  A. Disability income insurance. B. health insurance. C. Dental insurance. D. vision care insurance. E. liability insurance.   142. The definition of disability:  A. is universally accepted. B. varies. C. is standardized by American Council of Life Insurance. D. is provided by the Insurance Information Institute.   143. Good disability plans pay when you are:  A. unable to work at your regular job. B. unable to work at any job. C. on an extended vacation. D. ill even for a short period. E. fired from your regular job.   144. With disability income insurance, benefits usually begin:  A. on the first day of disability. B. Between 30 and 90 days after the disability occurs. C. on the 10th day of disability. D. one year after the start of the disability.   145. The waiting period in disability income insurance is called ____________ period.  A. Exclusion B. no benefit C. Coverage D. trade-off E. Elimination   146. Generally, disability income policies with longer waiting periods:  A. have higher premiums. B. have lower premiums. C. have about the same premium. D. Are issued by smaller insurance companies. E. Are issued by larger insurance companies.   147. The premium for noncancelable and guaranteed renewable disability income insurance is higher:  A. therefore, younger people should skip these coverages. B. hence, the insurance companies enjoy better profit margins. C. therefore, very few older workers should carry these coverages. D. but the coverages are well worth the extra cost.   148. In most employer-sponsored disability income insurance plans:  A. your employer pays part or all of the cost. B. you pay all the cost. C. your union pays all the cost. D. the Social Security Administration pays most of the premium. E. the Veterans Administration foots the bill.   149. The availability and extent of disability income insurance:  A. is better on the West Coast than on the East Coast. B. does not vary much in the United States. C. varies widely in different parts of the country, depending on employers. D. is mandated by federal laws. E. is mandated by state laws.   150. Most insurers limit benefits from all sources of insurance to no more than ____________ percent of your take-home pay.  A. 30-40 B. 40-50 C. 50-60 D. 60-70 E. 70-80   151. John Gleason is permanently disabled while on the job. Which of the following is the most likely source of disability income for John?  A. His employer B. Social security C. Worker's compensation D. An individual insurance policy E. None of the choices   152. Which of the following is true?  A. Group health insurance will cover you but not your immediate family. B. Group health insurance covers all of your health insurance needs. C. Group health insurance is the most common health coverage in the U.S. D. Group health insurance typically covers all an individuals medical costs.   153. For which of the following causes does Disability Income Insurance not provide regular cash for income lost by employees?  A. Accident B. Drug abuse C. Illness D. Pregnancy   154. Which of the following is false?  A. Good disability plans pay when you are unable to work at your regular job. B. Poor disability plans pay only when you are unable to work at any job. C. Disability benefits begin on the first day you are disabled. D. Generally, disability income policies with shorter waiting periods have lower premiums.     Essay Questions   155. Why are the costs of health insurance and health care increasing?  Among the reasons for high and rising health care costs are the use of high-priced equipment and personnel, increases in the variety and frequency of treatments, innovative but costly treatment of some illnesses, third-party payments, too many hospital beds and too much duplication of facilities, and the lack of incentives to make the most economical use of health care services.   156. What is the importance of health insurance and disability insurance in personal financial planning?  Both protections should be a part of your overall insurance program to safeguard your family's economic security.   157. What are the five basic types of health insurance? What are their benefits and limitations?  Five basic types of health insurance are available under group and individual policies: hospital expense insurance, surgical expense insurance, physician's expense insurance, major medical expense insurance, and comprehensive medical insurance. The benefits and limitations of each policy differ. Ideally, you should get a basic plan and a major medical policy that combines the values of both of these plans in a single policy.   158. What are private sources of health care insurance?  Health insurance and health care are available from private insurance companies, hospital and medical service plans such as Blue Cross/Blue Shield, health maintenance organizations (HMOs), preferred provider organizations (PPOs), health associations, home health agencies, and employer self-funded health plans.   159. What are government sources of health care insurance?  The federal government and state governments offer health coverage in accordance with laws that define the premiums and benefits. Two well-known government health programs are Medicare and Medicaid.   160. What is disability income insurance? What are the major sources of disability income insurance?  Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy. Sources of disability income insurance include your employer, social security, workers' compensation, the Veterans Administration, the federal government, state governments, unions, and private insurance.