#1
What does health insurance primarily provide coverage for?
Medical expenses
ExplanationHealth insurance covers primarily medical expenses.
#2
Which of the following is typically not covered by health insurance?
Cosmetic surgery
ExplanationHealth insurance typically does not cover cosmetic surgery.
#3
What is the purpose of a disability insurance?
To replace lost income due to inability to work
ExplanationDisability insurance replaces lost income due to inability to work.
#4
Which type of disability insurance is typically offered through employers?
Short-term disability insurance
ExplanationShort-term disability insurance is typically offered through employers.
#5
What is the deductible in health insurance?
The maximum amount the insured person pays out of pocket before the insurance starts covering expenses
ExplanationDeductible in health insurance is the maximum out-of-pocket amount before coverage begins.
#6
Which of the following is not a factor typically considered when determining health insurance premiums?
Blood type
ExplanationBlood type is not typically considered when determining health insurance premiums.
#7
What does SSDI stand for in disability insurance?
Social Security Disability Insurance
ExplanationSSDI stands for Social Security Disability Insurance.
#8
What is the coinsurance in health insurance?
A percentage of covered expenses that the insured person must pay after the deductible is met
ExplanationCoinsurance in health insurance is the percentage of expenses paid by the insured after meeting the deductible.
#9
Which of the following is a characteristic of a high-deductible health plan (HDHP)?
Low premiums and high out-of-pocket costs
ExplanationHigh-deductible health plans have low premiums but high out-of-pocket costs.
#10
What is the waiting period in disability insurance?
The time between the onset of disability and when benefits begin
ExplanationWaiting period in disability insurance is the time before benefits start after the onset of disability.
#11
What is COBRA in the context of health insurance?
A law that allows individuals to continue their group health insurance coverage after leaving employment
ExplanationCOBRA allows continuation of group health insurance after leaving employment.
#12
In disability insurance, what is residual disability coverage?
Coverage for disabilities that result in partial loss of income
ExplanationResidual disability coverage in disability insurance covers partial loss of income due to disabilities.
#13
What is the purpose of long-term care insurance?
To cover the costs of assistance with daily living activities for an extended period
ExplanationLong-term care insurance covers assistance with daily living activities for an extended period.
#14
What is the difference between group disability insurance and individual disability insurance?
Group disability insurance is provided by employers, while individual disability insurance is purchased independently
ExplanationGroup disability insurance is employer-provided, while individual disability insurance is self-purchased.
#15
What is the purpose of a pre-existing condition clause in health insurance?
To exclude coverage for any medical condition that existed before the insurance policy was issued
ExplanationPre-existing condition clauses in health insurance exclude coverage for medical conditions existing before policy issuance.
#16
What is the purpose of a waiting period in disability insurance?
To exclude coverage for disabilities that occur during a specified timeframe
ExplanationWaiting period in disability insurance excludes coverage for disabilities occurring within a specified timeframe.