____________ is a hybrid form of HMO that allows members to go outside the HMO network for care and reimburses them at a specified percentage of the cost.

Individual practice association

Preferred provider organization

Exclusive provider organization

Many savings programs are protected by the federal government against loss. Which of the following is Not?

A bond issued by one of the 50 states

A certificate of deposit at the bank

Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

If he went to a state college rather than a private college

If his parents took out an additional mortgage on their house for the loan

If the loan was insured by the federal government

If he went to a state college rather than a private college

If his parents co-signed the loan

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

Income tax may be charged on the interest if your income is high enough

Sales tax may be charged on the interest that you earn

You cannot earn interest until you pass your 18th birthday

Earnings from savings account interest may not be taxed

Income tax may be charged on the interest if your income is high enough

Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

When you need to buy a car to get a much better paying job

When some clothes you like go on sale

When the interest on the loan is greater than the interest you get on your savings

When you need to buy a car to get a much better paying job

When you really need a weeklong vacation

Many people put aside money to take care of unexpected expenses. If John and Jenny have money put aside for emergencies, in which of the following forms would it be of LEAST benefit to them if they needed it right away?

Invested in a down payment in the house

Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

If your parents become unemployed, your insurance coverage may stop, regardless of your age

Young people don't need health insurance because they are so healthy

You continue to be covered by your parents' insurance as long as you live at home, regardless of your age

You are covered by your parents' insurance until you marry, regardless of your age

If your parents become unemployed, your insurance coverage may stop, regardless of your age

Maria worked her way through college earning $20,000 per year. After graduation, her first job pays $40,000. The total dollar amount Maria will have to pay in federal income taxes in her new job will:

Double, at least, from when she was in college

Stay the same as when she was in college

Be lower than when she was in college

Double, at least, from when she was in college

Go up a little from when she was in college

A voluntary program under Medicare that provides payments for services not covered under basic hospital insurance is called:

Supplementary medical insurance

Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

If he went to a state college rather than a private college

If his parents took out an additional mortgage on their house for the loan

If the loan was insured by the federal government

If he went to a state college rather than a private college

If his parents co-signed the loan

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

Income tax may be charged on the interest if your income is high enough

Sales tax may be charged on the interest that you earn

You cannot earn interest until you pass your 18th birthday

Earnings from savings account interest may not be taxed

Income tax may be charged on the interest if your income is high enough

Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

When you need to buy a car to get a much better paying job

When some clothes you like go on sale

When the interest on the loan is greater than the interest you get on your savings

When you need to buy a car to get a much better paying job

When you really need a weeklong vacation

Many people put aside money to take care of unexpected expenses. If John and Jenny have money put aside for emergencies, in which of the following forms would it be of LEAST benefit to them if they needed it right away?

Invested in a down payment in the house

Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

If your parents become unemployed, your insurance coverage may stop, regardless of your age

Young people don't need health insurance because they are so healthy

You continue to be covered by your parents' insurance as long as you live at home, regardless of your age

You are covered by your parents' insurance until you marry, regardless of your age

If your parents become unemployed, your insurance coverage may stop, regardless of your age

Maria worked her way through college earning $20,000 per year. After graduation, her first job pays $40,000. The total dollar amount Maria will have to pay in federal income taxes in her new job will:

Double, at least, from when she was in college

Stay the same as when she was in college

Be lower than when she was in college

Double, at least, from when she was in college

Go up a little from when she was in college

A voluntary program under Medicare that provides payments for services not covered under basic hospital insurance is called:

Supplementary medical insurance

Prescription drug coverage is:

A state-run public assisted program

Needs co-payments and co-insurances

A universal life insurance provides two types of death protections, i.e. Type A and B. As with any insurance policy, universal life insurance has its own pros and cons. There are two principle advantages. Which of the followings is/are out of those advantages?

Flexibility and savings feature

Variability and savings feature

It is an insurance plan designed to supplement the basic coverage of hospitalization, surgical and physician expenses; used to finance more catastrophic medical costs. What is it?

Comprehensive major medical insurance

______________ is a health insurance plan that combines into a single policy the coverage for basic hospitalization, surgical, and physician expenses along with major medical protection.

Comprehensive major medical insurance

Most of the major types of health plans are sufficient to meet the protection needs of most individuals and families. But, insurance companies offer other options that provide limited protection against certain types of perils. Which one of the following is the example of those limited types of protections?

Comprehensive medical insurance

ABA CTFA Practice Test 10 - Free Online Exam Prep & Questions

It's a managed care plan that is similar to a plan that is similar to a PPO but reimburses members only when affiliated providers are used. What is it?

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ABA CTFA Practice Test 10

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