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Q&A: Test Your Knowledge

Q&A: Test Your Knowledge
  1. Text Source: Language of Medicine
    Jarvis Dante has been diagnosed with hyperthyroidism. As a part of his condition, he developed a protrusion of the eyeballs. Mr. Dante's physician can measure the protrusion of his eyeballs with a procedure that is known as:
    1. a thyroid function test
    2. exophthalmometry
    3. a radionuclide scan
    4. cerebral angiography
  2. Text Source: Life and Health Insurance Law
    In order to form a valid life insurance contract, an insurer must verify that the requirement of insurable interest is satisfied. The following statements describe situations in which individuals or corporations are applying for life insurance policies. Select the answer choice in which the insurable interest requirement has NOT been fulfilled.
    1. The Joyful Corporation is applying for an insurance policy on the life of one of its key employees.
    2. The Isla Bank is applying for an insurance policy on the life of one of its debtors, and the policy's face amount will be equal to the amount of the debtor's loan.
    3. The Everglade Corporation is applying for separate individual insurance policies covering the lives of each of its 150 employees.
    4. Elaine Peters, who is financially dependent upon Doris Bartley, is applying for an insurance policy on Ms. Bartley's life.
  3. Text Source: Claim Administration
    Medical expense insurance policies sometimes include a clause that allows an insurer to pay, in the event of an insured's death, all or part of a medical expense benefit to any institution or person with a valid claim to the benefits. By definition, this type of clause is known as:
    1. a restoration of benefits clause.
    2. a facility of payment clause.
    3. an assignment of benefits clause.
    4. an alternate benefits clause.
  4. Text Source: Management of Claim Operations
    One difference between an operating budget and a financial budget is that, unlike a financial budget, an operating budget:
    1. relates the expected level of production to the cost of items and services required to achieve that level of production.
    2. provides projections of incoming cash flows in order for an organization to be certain that it has sufficient cash to meet its ongoing financial obligations.
    3. presents an organization's projected sources of income and its plans for spending that income.
    4. presents a forecast of the level of an organization's assets and liabilities, provided that the organization's other budgets are met.

Correct Answers:

  1. B
  2. C
  3. B
  4. A