Exam Review NGPF Unit 11 Insurance Jan 2023

The number one reason risk pooling is valuable to the insurance industry is ...

• It allows companies to charge the same premium to all members of the pool.

• It brings together many individuals' premiums so that there is money to cover the select few with losses.

• It makes insurance coverage available to everyone, even those who are unable to make their payments.

• It is subsidized by the federal government.

Going to an in-network doctor is a good idea, because ...

• you will receive a higher quality of care.

• you will save on overall costs when compared to seeing an out-of-network doctor.

• you will get a significant tax credit for that year.

• you will always work with a primary care physician who manages your overall health.

All of the following represent a compelling reason to pay a higher insurance premium.

• You will receive a higher level of customer service and better care.

• You will have a lower deductible.

• You will have a higher coverage limit.

• You will have a lower out-of-pocket maximum.

If someone gets their health insurance through Medicaid, that means ...

• They are likely to pay all of their insurance premium and get a tax refund or credit when they file their taxes.

• They earn too much money to qualify for low-income subsidies.

• They are definitely a senior citizen since Medicaid is a government program specifically meant to help seniors.

• Their insurance premium is likely covered by the Federal and/or state government.

Each of the following factors affect your monthly auto insurance premium EXCEPT...

• Your vehicle's make, model, and year.

• Your driving record.

• Your local auto shop's customer service reviews

• Your age and marital status.

Ricardo was not paying attention to the flow of traffic and rear-ended the car in front of him. Both cars have damage, but he doesn't have car insurance. What will most likely happen?

• As long as the other person has auto insurance, then Ricardo is also covered.

• Ricardo will have to pay out-of-pocket for auto repair and possible medical bills for the person he hit.

• If the accident happened near a local repair shop, they might be able to fix the cars at a discounted price.

• They can split the costs: Ricardo's health insurance will cover medical bills and the person he hit will cover the vehicles' damages.

If you feel your insurance company is not upholding your policy correctly and you can't resolve it directly with the company, you will likely have the most success by contacting...

• Your US Senator or Congressperson

• The Federal Trade Commission

• Your state's Department of Insurance or Insurance Bureau

• Your local police department

Allison just turned 26 and is thinking of signing up for a Catastrophic Plan since she doesn't need a lot of medical care. Which of the following is TRUE?

• Her monthly premiums will be very expensive.

• She will have a high deductible.

• The quality of care that she will receive will be lower than the other types of plans, such as Gold or Silver.

• She can only request an appointment if she is having a "catastrophe" or emergency.

After getting into a car accident, you should immediately...

• Move you and your car to a safe area if possible and check to see if anyone is hurt.

• Call your insurance agent and assure them you were not at-fault.

• Call your insurance agent and assure them you were not at-fault.

• Start filing your auto insurance claim.

What is one difference between an HSA and an FSA?

• Only an HSA can be used to cover the care for a spouse or qualified dependents.

• You use pre-tax money for an FSA and use post-tax money for an HSA.

• FSA funds must be used up annually, while HSA funds can accumulate year over year.

• An FSA moves around with you even if you changes jobs; an HSA stays with your employer.