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Basic Insurance Principles MCQ

1. In alphabetic filing, a patients first name is the __________ filing unit.

First

Second

Third

Fourth

Answer

Correct Answer: Second

Note: This Question is unanswered, help us to find answer for this one

2. Motor vehicle crashes cost over ______ in lost wages and medical bills every year.

$10,000

$750,000

$12 million

$150 billion

Answer

Correct Answer: $150 billion

Note: This Question is unanswered, help us to find answer for this one

3. Medicare covers beneficiaries who are __________ and have elected to pay a premium for coverage.

Entitled to social security

Entitled to railroad retirement disability

Most persons who have ESRD

Both A & C

All of these are correct

Answer

Correct Answer: All of these are correct

Note: This Question is unanswered, help us to find answer for this one

4. A(n) ____ agent represents multiple insurance companies.

Captive

Business

Good

Independent

Employed.

Answer

Correct Answer: Independent

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5. Gatekeeping ______ secondary care services.

Does not control

Encompasses the delivery of

Requires a referral for

Bypasses

Answer

Correct Answer: Requires a referral for

Note: This Question is unanswered, help us to find answer for this one

6. Credit term life insurance is a policy with named as beneficiary.

Cash-value; your spouse

Level term; the creditor

Decreasing term; the creditor

Group term; your employer

Answer

Correct Answer: Decreasing term; the creditor

Note: This Question is unanswered, help us to find answer for this one

7. When a patient elects to receive care from a non-par, the patient will accrue _____.

Higher copays

High out of pocket expenses

Lower premiums

All of these

Answer

Correct Answer: Higher copays

Note: This Question is unanswered, help us to find answer for this one

8. Hospital inpatient charges are reported on the __________ claim.

CMS-1500

UB-92

UB-02

UB-04

Answer

Correct Answer: UB-04

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9. Cash-value buildup is relatively slow in ____ life policies.

Modified

Endowment

Limited-pay

Universal

Answer

Correct Answer: Modified

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10. The __________ mailing list includes announcements and discussion of an open-source idps.

Snort-SIGs

Programmable

Biometric

Optometry

Answer

Correct Answer: Optometry

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11. The community rating approach to health insurance premium pricing _____.

Prohibits insurance companies from varying rates based on health status or claims history

Advocates offering Social Security Medicare program to all individuals irrespective of their age

Favors the government's contribution to the health savings account (HSA)

Considers only medical insurance coverage from a private insurance company

Offers consumer directed health plans that go one step beyond a flexible-benefit plan

Answer

Correct Answer: Prohibits insurance companies from varying rates based on health status or claims history

Note: This Question is unanswered, help us to find answer for this one

12. Nonforfeiture rights guarantee that a policy owner will not lose his or her policys _____.

To transfer the risk of serious losses

Cash Value

Some selected number

None of these

Answer

Correct Answer: Cash Value

Note: This Question is unanswered, help us to find answer for this one

13. Health insurance involves two perils, accident and ____.

Death

Sickness

Disability

Liability

Answer

Correct Answer: Sickness

Note: This Question is unanswered, help us to find answer for this one

14. _____ can be both an advantage and a disadvantage of universal life insurance.

Flexible premiums

Tax features

High returns

Unbundling

Answer

Correct Answer: Flexible premiums

Note: This Question is unanswered, help us to find answer for this one

15. A(n) _____ policy is a type of term insurance.

Industrial life insurance

Straight term

Cash value

Named beneficiary

Answer

Correct Answer: Straight term

Note: This Question is unanswered, help us to find answer for this one

16. As a rule of thumb, your piti costs shouldn't exceed ________ of your pretax monthly income.

8 percent

18 percent

28 percent

48 percent

Answer

Correct Answer: 28 percent

Note: This Question is unanswered, help us to find answer for this one

17. Using the ____ approach is the most accurate method to determine life insurance needs.

Human life value

Multiple earnings

Risk assessment

Economic identification

Needs analysis

Answer

Correct Answer: Needs analysis

Note: This Question is unanswered, help us to find answer for this one

Insurance Principles MCQs | Topic-wise

MCQ on Basic Insurance Principles

General Insurance Principles MCQs

Basic Insurance Principles MCQ

1. In alphabetic filing, a patients first name is the __________ filing unit.

2. Motor vehicle crashes cost over ______ in lost wages and medical bills every year.

3. Medicare covers beneficiaries who are __________ and have elected to pay a premium for coverage.

4. A(n) ____ agent represents multiple insurance companies.

5. Gatekeeping ______ secondary care services.

6. Credit term life insurance is a ____ policy with ____ named as beneficiary.

7. When a patient elects to receive care from a non-par, the patient will accrue _____.

8. Hospital inpatient charges are reported on the __________ claim.

9. Cash-value buildup is relatively slow in ____ life policies.

10. The __________ mailing list includes announcements and discussion of an open-source idps.

11. The community rating approach to health insurance premium pricing _____.

12. Nonforfeiture rights guarantee that a policy owner will not lose his or her policys _____.

13. Health insurance involves two perils, accident and ____.

14. _____ can be both an advantage and a disadvantage of universal life insurance.

15. A(n) _____ policy is a type of term insurance.

16. As a rule of thumb, your piti costs shouldn't exceed ________ of your pretax monthly income.

17. Using the ____ approach is the most accurate method to determine life insurance needs.

6. Credit term life insurance is a policy with named as beneficiary.