Q 1. 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.

E) To provide coverage for dental care.

Report

Q 2. 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.

E) By limiting coverage to specific medical conditions only.

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Q 3. What is the upfront contribution an individual makes for health insurance known as?

A) Deductible

B) Co-payment

C) Premium

D) Coinsurance

E) Exclusion

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Q 4. What is NOT covered by health insurance based on the provided information?

A) Hospital stay

B) Medicines

C) Surgery

D) Doctor's visits

E) Home renovation expenses

Report

Q 5. What is the primary difference between health insurance and other types of insurance mentioned in the passage?

A) Health insurance covers all types of insurance needs.

B) Other types of insurance primarily cover health expenses.

C) Health insurance has higher premiums.

D) Health insurance excludes pre-existing conditions.

E) Other types of insurance are not mentioned in the passage.

Report

Q 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

E) Social Health Insurance

Report

Q 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

E) Corporate sponsorships

Report

Q 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

E) The insured individual's employer

Report

Q 9. 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

E) Purchase a separate policy for each service

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Q 10. 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

E) To promote government-sponsored healthcare programs

Report

Q 11. 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.

E) Health insurance is offered exclusively by government agencies.

Report

Q 12. 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

E) Healthcare provider and insured's employer

Report

Q 13. What role does the healthcare provider play in the context of health insurance?

A) Collecting premiums from insured individuals

B) Deciding on the insurance policy terms and conditions

C) Providing healthcare services and determining their cost

D) Processing insurance claims and reimbursements

E) Promoting insurance policies to potential customers

Report

Q 14. How does the involvement of the healthcare provider affect the complexity of 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.

E) It eliminates the need for insurance policies.

Report

Q 15. What is the absence of which party mentioned in the passage would cause health insurance to lose its meaning?

A) The insured individual

B) The healthcare provider

C) The insurer

D) The government agency

E) The insured individual's employer

Report

Q 16. Why was Ravi not worried about his medical bills when he had an accident and was hospitalized?

A) Because he had taken a health insurance policy.

B) Because he received free medical treatment at Gandhi Hospital.

C) Because he had sufficient savings to cover the medical bills.

D) Because the accident was not serious.

E) Because his employer paid for his medical expenses.

Report

Q 17. In the context of health insurance, what is the role of the healthcare provider, like Gandhi Hospital in Ravi's case?

A) Collecting premiums from insured individuals.

B) Determining the insurance policy terms and conditions.

C) Providing medical treatment and sharing details with the insurer.

D) Processing insurance claims and reimbursements.

E) Promoting insurance policies to potential customers.

Report

Q 18. 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

E) Asymmetric market

Report

Q 19. What is one of the main reasons for the imperfections in the health insurance market, as mentioned in the passage?

A) Lack of competition among insurers.

B) Information asymmetry between insurers and insured individuals.

C) High pricing of insurance policies.

D) Extensive government regulation.

E) Overlapping coverage of insurance policies.

Report

Q 20. What term is used to describe the insurer's practice of selecting and insuring individuals with lower health risks in health insurance?

A) Risk pooling

B) Risk aversion

C) Risk assessment

D) Cherry-picking

E) Underwriting

Report

Q 21. What is the term used to describe the situation where a senior person is more interested in health insurance compared to a young person?

A) Adverse selection

B) Moral hazard

C) Risk pooling

D) Underwriting

E) Cost containment

Report

Q 22. Why might an insurance company be more interested in providing health insurance to a young-aged person?

A) Young people are more prone to health risks.

B) Young people are less interested in health insurance.

C) Premiums for young people are lower.

D) Young people require more medical services.

E) Young people have higher incomes

Report

Q 23. What is demand-side moral hazard in the context of health insurance?

A) The tendency of insured individuals to use fewer health services.

B) The tendency of insured individuals to make informed healthcare decisions.

C) The tendency of insured individuals to accept fewer health services.

D) The tendency of insured individuals to make excessive use of health services.

E) The tendency of healthcare providers to provide fewer services to insured individuals.

Report

Q 24. What is supply-side moral hazard in the context of health insurance?

A) The tendency of healthcare providers to offer fewer services to insured individuals.

B) The tendency of insured individuals to avoid medical care.

C) The tendency of healthcare providers to provide more expensive treatments.

D) The tendency of insured individuals to underutilize health services.

E) The tendency of healthcare providers to restrict access to healthcare.

Report

Q 25. What do health insurers use to minimize moral hazards in the context of health insurance?

A) Risk assessment tools

B) Premium discounts for seniors

C) Cost containment mechanisms

D) Underwriting guidelines

E) Government regulations

Report

IC27 - Health Insurance exam

IC27 - Health Insurance exam

Q 1. What is the primary purpose of health insurance?

Q 2. How does health insurance distribute the financial risk associated with healthcare expenses?

Q 3. What is the upfront contribution an individual makes for health insurance known as?

Q 4. What is NOT covered by health insurance based on the provided information?

Q 5. What is the primary difference between health insurance and other types of insurance mentioned in the passage?

Q 6. What is another term used interchangeably with "Commercial Health Insurance"?

Q 7. What is the main source of funding for commercial health insurance coverage?

Q 8. Who typically assumes most of the risk associated with healthcare services in commercial health insurance?

Q 9. What does an insured individual have to do to receive risk coverage in commercial health insurance?

Q 10. What is the primary reason for using the term "Commercial Health Insurance" instead of "Private Health Insurance"?

Q 11. What distinguishes health insurance from other types of insurance mentioned in the passage?

Q 12. In traditional health insurance, who are the two main parties involved?

Q 13. What role does the healthcare provider play in the context of health insurance?

Q 14. How does the involvement of the healthcare provider affect the complexity of health insurance?

Q 15. What is the absence of which party mentioned in the passage would cause health insurance to lose its meaning?

Q 16. Why was Ravi not worried about his medical bills when he had an accident and was hospitalized?

Q 17. In the context of health insurance, what is the role of the healthcare provider, like Gandhi Hospital in Ravi's case?

Q 18. What term is used to describe health insurance as an 'imperfect market' according to economists?

Q 19. What is one of the main reasons for the imperfections in the health insurance market, as mentioned in the passage?

Q 20. What term is used to describe the insurer's practice of selecting and insuring individuals with lower health risks in health insurance?

Q 21. What is the term used to describe the situation where a senior person is more interested in health insurance compared to a young person?

Q 22. Why might an insurance company be more interested in providing health insurance to a young-aged person?

Q 23. What is demand-side moral hazard in the context of health insurance?

Q 24. What is supply-side moral hazard in the context of health insurance?

Q 25. What do health insurers use to minimize moral hazards in the context of health insurance?

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