Personal Finance Chapter 9

Blakely and Marty have been dating for 3 years. Marty is interested in going skydiving. Marty’s tolerance for extreme activities is very high. Blakely’s risk tolerance is a lot lower. When discussing the activity, Marty tells Blakely that they will be in a secure plane and that the parachutes they will use have been hand-packed and checked by three people. In the end, Marty makes the jump but Blakely does not.

Blakely’s risk control strategy was to

• transfer the risk

• minimize the risk

• maximize the risk

• Avoid the risk

A problem with living an unhealthy lifestyle is that the:

• severity of future risks increases over time.

• frequency of future risks increases over time.

• ability to transfer risks increases over tim

• severity and frequency of future risks increases over time.

The number-one determinant of someone’s health is _____________________, followed by _____________.

• genetic disposition; medical care.

• medical care; health behavior.

• ocial circumstances; environmental exposures.

• health behavior; genetic disposition.

If Nicole buys health insurance, she is effectively:

• transferring the risk of high health-related expenses to an insurance company.

• accepting the risks associated with major medical expenses

• retaining the costs associated with health risks.

• avoiding the fact that she might become ill in the future.

For young adults, average health expenses are minimal but they may include:

• going to a hospital emergency room because of an accident.

• visiting a doctor or emergency room because of an injury or accident or getting a prescription for medicine.

• visiting a doctor because of an injury.

• obtaining a prescription for medicine.

A government-supported health insurance program that is designed to provide coverage to those currently living in poverty is calle

• Obamacare

• Medicaid

• Medicare

• Affordable Care Act

Which of the following statement is true about health insurance?

• A common insurance deductible is 80/20.

• An insurance copay is the maximum amount the insured individual is subject to pay.

• An insurance deductible is the amount that the insured individual must pay before the health insurance company will pay any money.

• An insurance copayment is a percentage fee an insured individual must pay to receive healthcare services.

George has a health insurance policy with the following provisions: $510 deductible, $45 copay, and 80/20 coinsurance provision. If George has an accident that costs $2960 in medical expenses, how much will he have to pay out of pocket?

• $2405

• $481

• $1036

• $555

Which of the following is not a qualified medical expense within a flexible spending account?

• Prescription drugs.

• Long-term care premiums.

• Health insurance deductibles.

• Dental expenses.

The Social Security Administration’s definition of disability is most closely linked with the ____________________ disability definition.

• any occupation.

• comprehensive occupation.

• own occupation.

• modified-own occupation.