Insurance Principles MCQs

Insurance Principles MCQs

Our experts have gathered these Insurance Principles MCQs through research, and we hope that you will be able to see how much knowledge base you have for the subject of Insurance Principles by answering these multiple-choice questions.
Get started now by scrolling down!

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

A.   Human life value

B.   Multiple earnings

C.   Risk assessment

D.   Economic identification

E.   Needs analysis

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

A.   8 percent

B.   18 percent

C.   28 percent

D.   48 percent

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

A.   Industrial life insurance

B.   Straight term

C.   Cash value

D.   Named beneficiary

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

A.   Flexible premiums

B.   Tax features

C.   High returns

D.   Unbundling

5: Health insurance involves two perils, accident and ____.

A.   Death

B.   Sickness

C.   Disability

D.   Liability

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

A.   To transfer the risk of serious losses

B.   Cash Value

C.   Some selected number

D.   None of these

7: The community rating approach to health insurance premium pricing _____.

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

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

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

D.   Considers only medical insurance coverage from a private insurance company

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

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

A.   Snort-SIGs

B.   Programmable

C.   Biometric

D.   Optometry

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

A.   Modified

B.   Endowment

C.   Limited-pay

D.   Universal

10: Hospital inpatient charges are reported on the __________ claim.

A.   CMS-1500

B.   UB-92

C.   UB-02

D.   UB-04

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

A.   Higher copays

B.   High out of pocket expenses

C.   Lower premiums

D.   All of these

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

A.   Cash-value; your spouse

B.   Level term; the creditor

C.   Decreasing term; the creditor

D.   Group term; your employer

13: Gatekeeping ______ secondary care services.

A.   Does not control

B.   Encompasses the delivery of

C.   Requires a referral for

D.   Bypasses

14: A(n) ____ agent represents multiple insurance companies.

A.   Captive

B.   Business

C.   Good

D.   Independent

E.   Employed.

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

A.   Entitled to social security

B.   Entitled to railroad retirement disability

C.   Most persons who have ESRD

D.   Both A & C

E.   All of these are correct

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

A.   $10,000

B.   $750,000

C.   $12 million

D.   $150 billion

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

A.   First

B.   Second

C.   Third

D.   Fourth