Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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1.
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Insurance which provides protection against the high costs of serious illnesses
or injuries is
a. | surgical insurance. | c. | major medical insurance. | b. | hospital
insurance. | d. | basic health
insurance. |
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2.
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The amount of permanent life insurance coverage that was originally purchased
and that will be paid upon the death of the insured is
a. | limited payment policies. | c. | face value. | b. | cash
value. | d. | the
premium. |
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3.
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Insurance that covers the insured when an illness or injury requires
hospitalization and usually pays most or all of the charges for the room, food, and expenses for such
items as use of an operating room, anesthesia, X rays, laboratory tests, and medicines is
a. | surgical insurance. | c. | major medical insurance. | b. | hospital
insurance. | d. | basic health
insurance. |
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4.
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The amount of money received should a policyholder decide to surrender a
permanent life insurance policy is
a. | limited payment policies. | c. | face value. | b. | cash
value. | d. | the
premium. |
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5.
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Insurance that covers all or part of the surgeon’s fees for an operation
is
a. | surgical insurance. | c. | major medical insurance. | b. | hospital
insurance. | d. | basic health
insurance. |
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6.
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A type of insurance that has cash value and an investment feature as its common
characteristics is
a. | permanent term insurance. | c. | level term
insurance. | b. | decreasing term insurance. | d. | a renewable policy. |
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7.
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A health insurance delivery system that involves health care providers such as a
group of physicians, a clinic or a hospital contracting with an employer to provide medical services
to employees is
a. | surgical insurance. | c. | major medical insurance. | b. | a health maintenance
organization. | d. | a preferred
provider organization. |
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8.
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Regular medical insurance
a. | pays part or all of the fees for nonsurgical care given in the doctor’s office,
patient’s home, or a hospital.. | b. | pays only for hospital
charges. | c. | pays only for surgical expenses. | d. | pays only for serious illnesses or
injuries. |
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9.
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The primary purpose of life insurance is
a. | to provide income if the insured is disabled. | b. | a means of
investing. | c. | a means of saving. | d. | protection against financial loss associated
with dying. |
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10.
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Term life insurance on which the amount of protection gradually becomes smaller
but the premiums remain the same during the term is
a. | permanent term insurance. | c. | level term
insurance. | b. | decreasing term insurance. | d. | a renewable policy. |
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11.
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Protection provided by regular medicine, hospital, and surgical coverages
is
a. | surgical insurance. | c. | major medical insurance. | b. | hospital
insurance. | d. | basic health
insurance. |
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12.
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Insurance which allows the policyholder to continue his or her insurance for one
or more terms without taking a physical examination is
a. | permanent term insurance. | c. | level term
insurance. | b. | decreasing term insurance. | d. | a renewable policy. |
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13.
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A life insurance policy that provides financial protection from losses resulting
from loss of life during a definite period of time is
a. | term life insurance | c. | level term insurance | b. | decreasing term insurance | d. | renewable
insurance |
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14.
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A plan that normally consists of a staffed medical clinic organized to serve its
members is
a. | coinsurance. | c. | deductible additional expense. | b. | a health maintenance
organization. | d. | a preferred
provider organization. |
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15.
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Permanent insurance that extends over the lifetime of the insured is
a. | whole life insurance. | c. | level term insurance. | b. | decreasing term
insurance. | d. | a renewable
policy. |
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16.
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State governments support a health insurance program designed to provide medical
benefits to employees who are injured on the job. This program is
a. | worker’s compensation. | c. | Medicaid. | b. | supplementary
insurance. | d. | Medicare. |
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17.
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Term life insurance on which the amount of protection and the premiums remain
the same while the insurance is in effect is
a. | permanent term insurance. | c. | level term
insurance. | b. | decreasing term insurance. | d. | a renewable policy. |
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18.
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When policyholders are expected to pay a certain percentage of the costs over
and above the deductible amount, they are paying the
a. | coinsurance. | c. | deductible additional expense. | b. | premium. | d. | coverage expense. |
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