Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Risk Management & Insurance > Final Exam: Chapter 21, 24, 25, 26, 30 > Flashcards

Final Exam: Chapter 21, 24, 25, 26, 30 Flashcards

1
Q

Blue Cross

A

originated as nonprofit
associations, usually organized by hospitals under
special state-enabling legislation to provide for prepayment of hospital expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Blue Shield

A

organizations were organized by state or local physicians
associations to facilitate prepayment of physicians’
fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What did Blue Cross and Blue Shield organizations represent?

A

an early attempt to cut out the insurance agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What do Blue Cross and Blue Shield organizations do?

A

you pay into a group of hospitals to pre-pay your hospital stay and surgery expenses, eventually merged together

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

how long have commercial insurance companies been around?

A

about 90 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what do commercial insurance companies do?

A

sell health insurance to make a profit, sold like someone would sell property & liability insurance, some are mutuals, initially provided on a reimbursement basis, shrinking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are the government health insurance plans?

A

Medicare and Medicaid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Medicare

A

the federal government’s most extensive and expensive health insurance plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does Medicaid cover?

A

long-term disable people as well as 65 +HMO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

HMOs

A

brings all of your healthcare under one roof, cuts out the insurance company, you pay the provider of your healthcare directly, the insurance element is derived from the manner in which they charge their services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

capitation approach for HMOs

A

subscribers pay a fee and in return receive comprehensive medical care, many were formed many years ago by physician’s groups

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

commercial insurance companies are what

A

private

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

PPOs

A

provide more flexibility and leniency, HMO lite, insurance company would provide list of people you could go to and insurance company had contract with organization to control price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

who is medicare administered by

A

states

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

health insurance coverages

A

original was hospitalization insurance, major medical insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

hospitalization insurance

A

first attempt at trying to lower costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

major medical insurance

A

involved high deductibles, co-insurance where you pay a percentage of of bill up to a certain amount, lifetime maximum benefits, affordable care act outlined the idea of this

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is the best way to get health insurance?

A

an employer-sponsored plan with group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What did the Affordable Care Act do?

A

expanded Medicaid and was a way for more people to qualify for Medicaid, gave subsidies for people to buy health insurance, created penalties for people who didn’t have health insurance, pre-existing condition exclusions were eliminated, underwriting had been eliminated in this field

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the biggest single investment of your lifetime?

A

homeowner’s insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

monoline home insurance

A

piece together a policy which led to a packaged homeowner’s policy, most common is an open perils special policy

22
Q

Who is HO-3 for?

A

the person who owns the home

23
Q

Coverage A

A

house/structure

24
Q

Coverage B

A

other structures

25
Q

Coverage C

A

personal property

26
Q

Coverage D

A

loss of use

27
Q

Coverage E

A

personal liability

28
Q

What coverages are found under HO-4?

A

C, D, E

29
Q

Who is HO-4 for?

A

renters

30
Q

What is covered under Coverage B?

A

garage, deck, pool, fence, detached buildings

31
Q

What is covered under Coverage D?

A

like a house fire, and pays for you to stay elsewhere

32
Q

Open perils

A

you cover everything unless excluded

33
Q

Named perils

A

if it isn’t there it isn’t covered

34
Q

actual cash value

A

can be depreciated

35
Q

replacement cost coverage

A

you get today’s value for the item

36
Q

What do common homeowner’s endorsements do?

A

they are a modification of a policy to improve it that you pay more for, takes out theft limitations

37
Q

Homeowners Cost / Risk Factors

A

Fire Protection
Type of Construction
Geographic Location
Size of Deductible
Credit Score

38
Q

mono-line fire dwelling insurance

A

for rental dwellings

39
Q

What is the most common form of mono-line fire dwelling insurance?

A

DP-3, similar to HO-3

40
Q

How can coverages be added to mono-line fire dwelling insurance?

A

by endorsement

41
Q

MH-3

A

Written on an all risk special form

42
Q

flood insurance

A

underwritten and reinsured by the federal government

43
Q

national flood insurance program

A

managed by the Federal Emergency Management Agency (FEMA)

44
Q

How is flood insurance made available?

A

by buying it directly or from private insurance companies that have a write your own policy

45
Q

inland marine insurance

A

insures items such as jewelry, guns, hand tools, silverware, computer, collectibles, hearing aids

46
Q

boat/watercraft insurance

A

Most ISO forms under HO-3 provide essentially no coverage for this, coverage is very broad but includes property & liability coverage

47
Q

What does flood insurance involve?

A

high deductibles, low coverage, high premiums

48
Q

collision coverage

A

accident is the keyword, doesn’t matter who is at fault

49
Q

Why do most people not carry flood insurance?

A

Cost, not every area has it available to them

50
Q

6 auto insurance premium / cost factors

A

1) age and sex of driver(s)
2) driving record
3) type of vehicle
4) use of vehicle
5) geographic location
6) credit score

51
Q

3 types of potential losses for auto

A

1) legal liability
2) injury to the insured person or members of the insured’s family
3) damage or loss of the auto itself

52
Q

How did the Affordable Care Act benefit people?

A

took away underwriting, eliminated pre-existing condition exclusions

Risk Management & Insurance (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions