1. Critics of HMO’s say that :

a) HMO members have too many choices of doctors they can use and service they can receive.

b) HMO doctors waste money because they have no incentive to control costs

c) The 10 % deductible required for every producer is cost prohibitive for most citizens

d) None of the above

2. Granny Mayberry ‘s health insurance policy has a $500 annual aggregate deductible, 80/20 cost sharing deductible, and a $ 5000 maximum annual out of the pocket cap of $5000. She wrecks her Harley and breaks her hip, and her total medical bills for the injury are $12, 890. How much will her insurer pay for this claim?

a) 7,890 b) 10,312 c) 9912 d) 12890

3. Which of the following statements about term insurance is true?

a) the coverage is appropriate if the goals is permanent lifetime protection

b) most policies can be renewed for additional periods without evidence of insurability

c) premiums increase at a constant rate each time the policy is renewed

d) most policies have a cash value that is refunded when coverage cease