Life Insurance Quiz

When is term life insurance considered appropriate?

• When the insured is young and has a temporary need for coverage

• When the insured wants to build cash value

• When the insured is retired

• When the insured has no dependents

What is the blackout period in life insurance?

• The time when Social Security benefits to a widow terminate until they resume

• The period when the policyholder cannot make claims

• The time when the policy is inactive due to non-payment

• The period when the policyholder can change beneficiaries

What does the face amount of an ordinary life insurance policy represent?

• The net amount at risk plus the legal reserve

• The total premiums paid

• The cash value of the policy

• The amount of interest earned

What is a major provision of the ACA regarding Medicaid?

• Expands Medicaid to increase the maximum income for eligibility

• Reduces Medicaid benefits for low-income individuals

• Limits Medicaid to those over 65

• Eliminates Medicaid for those under 26

What is required for individuals who elect to utilize a commercial HDHP?

• They must also utilize a health savings account (HSA)

• They must have a secondary insurance plan

• They must pay higher premiums

• They must have a low deductible

What type of health insurance plans are most individuals covered by employer health insurance plans under?

• Private insurance plans

• Commercial managed care plans

• Government insurance plans

• Catastrophic health plans

What is the purpose of employers self-insuring medical expense plans?

• To increase employee premiums

• To reduce costs and retain funds

• To comply with federal laws

• To provide universal coverage

What are deductibles in health insurance typically based on?

• Monthly expenses

• Calendar-year

• Lifetime earnings

• Weekly income

Who manages pharmacy benefits for retail prescription financing?

• Insurance companies

• Pharmacy benefit managers

• Government agencies

• Retail pharmacies

What must be offered to separating employees under COBRA?

• Severance pay

• Health insurance benefits

• Retirement plans

• Stock options