IC27 Mock Test Sample 2
Health insurance provides financial protection by pooling risks across individuals through premium payments. It is also called commercial or private insurance and is mainly funded by policyholders. Unlike other insurance, it involves a third party—the healthcare provider—making it more complex. The insurer bears risk, while providers deliver treatment and influence costs. Concepts like asymmetric information and cherry-picking highlight market imperfections. Health insurance ensures coverage for hospitalization, medicines, and surgeries but excludes non-medical expenses. The system depends on coordination between insured, insurer, and provider. Overall, it reduces financial burden during medical emergencies and improves access to healthcare services.
1. In Japan, if the premium for Long life medical care plan is say 20000 Yen, what will be the contributions from general tax revenues?
A) 12000 Yen
B) 10000 Yen
C) 20000 Yen
D) 5000 Yen
2. What is the primary purpose of health insurance?
A) To provide financial protection against unexpected events like accidents
B) To cover all medical expenses without any limitations
C) To pool money for investment purposes
D) To insure against property damage
3. How does health insurance distribute the financial risk associated with healthcare expenses?
A) By offering free healthcare services to all individuals
B) By pooling costs over time and over people
C) By charging high premiums to individuals with pre-existing conditions
D) By excluding coverage for surgeries and doctor's visits
4. What is the upfront contribution an individual makes for health insurance known as?
A) Deductible
B) Co-payment
C) Premium
D) Coinsurance
5. What is NOT covered by health insurance based on the provided information?
A) Hospital stay
B) Medicines
C) Surgery
D) Doctor's visits
6. What is another term used interchangeably with "Commercial Health Insurance"?
A) Public Health Insurance
B) Government Health Insurance
C) Private Health Insurance
D) State Health Insurance
7. What is the main source of funding for commercial health insurance coverage?
A) Tax revenue
B) Premiums paid by insured individuals
C) Donations from non-profit organizations
D) Government grants
8. Who typically assumes most of the risk associated with healthcare services in commercial health insurance?
A) The insured individual
B) The government
C) Non-governmental entities
D) Public insurance companies
9. Who typically assumes most of the risk associated with healthcare services in commercial health insurance?
A) The insured individual
B) The government
C) Non-governmental entities
D) Public insurance companies
10. What does an insured individual have to do to receive risk coverage in commercial health insurance?
A) Pay taxes
B) Make premium payments
C) Donate to a charity
D) Work for a government agency
11. What is the primary reason for using the term "Commercial Health Insurance" instead of "Private Health Insurance"?
A) To emphasize government ownership of insurance companies
B) To highlight the affordability of insurance policies
C) To differentiate between health and property insurance
D) To avoid confusion with non-profit insurance organizations
12. What distinguishes health insurance from other types of insurance mentioned in the passage?
A) Health insurance typically has higher premiums
B) Health insurance covers a wider range of risks
C) Health insurance involves a third party, the healthcare provider
D) Health insurance only covers property-related risks
13. In traditional health insurance, who are the two main parties involved?
A) Insurer and healthcare provider
B) Insured and government agency
C) Insured and insurer
D) Healthcare provider and government agency
14. The absence of which party would cause health insurance to lose its meaning?
A) The insured individual
B) The healthcare provider
C) The insurer
D) The government agency
15. What term is used to describe health insurance as an 'imperfect market' according to economists?
A) Perfect market
B) Inefficient market
C) Competitive market
D) Imperfect information market
16. What term describes the insurer's practice of selecting individuals with lower health risks?
A) Risk pooling
B) Risk aversion
C) Risk assessment
D) Cherry-picking
17. What role does the healthcare provider play in health insurance?
A) Collecting premiums from insured individuals
B) Deciding policy terms and conditions
C) Providing healthcare services and determining their cost
D) Processing claims and reimbursements
18. How does the involvement of the healthcare provider affect health insurance?
A) It simplifies the insurance process
B) It leads to higher insurance premiums
C) It makes the insurance process more complex
D) It reduces the role of the insured individual
19. Why was Ravi not worried about his medical bills when he had an accident?
A) Because he had taken a health insurance policy
B) Because he received free medical treatment
C) Because he had sufficient savings
D) Because the accident was not serious
20. What is the role of the healthcare provider like Gandhi Hospital in Ravi's case?
A) Collecting premiums from insured individuals
B) Determining policy terms and conditions
C) Providing treatment and sharing details with the insurer
D) Processing claims and reimbursements
