Social Science Business Insurance
CEBS GBA 2 ACTUAL EXAM QUESTIONS WITH
COMPLETE SOLUTION GUIDE) (MULTIPLE
CHOICES) (A+ GRADED 100% VERIFIED)
LATEST VERSION 2025
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Texas all lines adjuster exam AIC 302 SIMULATED EXAM Wisconsin Accident
378 terms 50 terms 230 terms
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Which of the following are Which of the following are distinguishing characterstics that make
distinguishing characterstics that health care unique?
make health care unique? a) Often only a few providers of a particular service exist in a
a) Often only a few providers of given area.
a particular service exist in a b) It is easy to judge the quality and cost of competing services
given area. with new tools that facilitate comparison.
b) It is easy to judge the quality c) The decision about which services to purchase is usually made
and cost of competing services by a physician or other clinician.
with new tools that facilitate d) Full payment to the provider is made by the consumer rather
comparison. than a health care insurer.
c) The decision about which e) 3rd-party health insurance for most individuals is paid for or
services to purchase is usually subsidized by employers or government agencies, insulating
made by a physician or other patients from health care costs.
clinician. f) all of the above
d) Full payment to the provider g) a and b only
is made by the consumer rather h) a, c, and e
than a health care insurer. i) a, b, c, and d, but not e
e) 3rd-party health insurance for
most individuals is paid for or
subsidized by employers or
government agencies, insulating
patients from health care costs.
f) all of the above
g) a and b only
h) a, c, and e
i) a, b, c, and d, but not e
, 1) Pooling of losses
What are the 4 distinct 2) Payment only for random losses
characteristics of insurance? 3) Risk transfer
4) Indemnification
According to the law of 1) The sharing of losses by the entire group
numbers, pooling implies what 2 2) The prediction of future losses with some accuracy.
things?
A __________ loss is one that is random
unforseen and unexpected and
occurs as a result of chance.
What is the sole exception to self-insurance
the element of risk transfer,
assuming the risk itself rather
than an insurance company?
_____________________ restores the indemnification
individual to their preexisting
state had the loss not occurred.
________________ occurs because Adverse selection
individuals and businesses are
more likely to have claims, and
more inclined to purchase
insurance, than those who are
less likely to have claims.
True or False: Adverse selection, False: Adverse selection, if unchecked, will lead toward more sick
if unchecked, will lead toward individuals seeking insurance, driving up insurance premiums,
more healthy individuals seeking and then even fewer healthy individuals will purchase, continuing
insurance and lowering the spiral of higher costs.
premiums.
True or False: Adverse selection True
occurs when individual buyers
of health insurance know more
about their health status than do
insurers.
_______________ is the problem faced Moral hazard
by insurers because individuals
are more likely to use unneeded
health services when they are
not paying the full cost of those
services.
What is the primary tool that Coinsurancce (%) and copayments ($)
insurers have to combat the
moral hazard problem?
What is the generic term for any third-party payer
outside party, typically an
insurance company or a a
government program, which
pays for part or all of a patient's
health care services?
What are the two broad 1) Private insurers
categories of health insurers? 2) Public programs / insurers
CEBS GBA 2 ACTUAL EXAM QUESTIONS WITH
COMPLETE SOLUTION GUIDE) (MULTIPLE
CHOICES) (A+ GRADED 100% VERIFIED)
LATEST VERSION 2025
Save
Students also studied
Flashcard sets Study guides
Texas all lines adjuster exam AIC 302 SIMULATED EXAM Wisconsin Accident
378 terms 50 terms 230 terms
dan_wanyeki Preview Preview Preview
Which of the following are Which of the following are distinguishing characterstics that make
distinguishing characterstics that health care unique?
make health care unique? a) Often only a few providers of a particular service exist in a
a) Often only a few providers of given area.
a particular service exist in a b) It is easy to judge the quality and cost of competing services
given area. with new tools that facilitate comparison.
b) It is easy to judge the quality c) The decision about which services to purchase is usually made
and cost of competing services by a physician or other clinician.
with new tools that facilitate d) Full payment to the provider is made by the consumer rather
comparison. than a health care insurer.
c) The decision about which e) 3rd-party health insurance for most individuals is paid for or
services to purchase is usually subsidized by employers or government agencies, insulating
made by a physician or other patients from health care costs.
clinician. f) all of the above
d) Full payment to the provider g) a and b only
is made by the consumer rather h) a, c, and e
than a health care insurer. i) a, b, c, and d, but not e
e) 3rd-party health insurance for
most individuals is paid for or
subsidized by employers or
government agencies, insulating
patients from health care costs.
f) all of the above
g) a and b only
h) a, c, and e
i) a, b, c, and d, but not e
, 1) Pooling of losses
What are the 4 distinct 2) Payment only for random losses
characteristics of insurance? 3) Risk transfer
4) Indemnification
According to the law of 1) The sharing of losses by the entire group
numbers, pooling implies what 2 2) The prediction of future losses with some accuracy.
things?
A __________ loss is one that is random
unforseen and unexpected and
occurs as a result of chance.
What is the sole exception to self-insurance
the element of risk transfer,
assuming the risk itself rather
than an insurance company?
_____________________ restores the indemnification
individual to their preexisting
state had the loss not occurred.
________________ occurs because Adverse selection
individuals and businesses are
more likely to have claims, and
more inclined to purchase
insurance, than those who are
less likely to have claims.
True or False: Adverse selection, False: Adverse selection, if unchecked, will lead toward more sick
if unchecked, will lead toward individuals seeking insurance, driving up insurance premiums,
more healthy individuals seeking and then even fewer healthy individuals will purchase, continuing
insurance and lowering the spiral of higher costs.
premiums.
True or False: Adverse selection True
occurs when individual buyers
of health insurance know more
about their health status than do
insurers.
_______________ is the problem faced Moral hazard
by insurers because individuals
are more likely to use unneeded
health services when they are
not paying the full cost of those
services.
What is the primary tool that Coinsurancce (%) and copayments ($)
insurers have to combat the
moral hazard problem?
What is the generic term for any third-party payer
outside party, typically an
insurance company or a a
government program, which
pays for part or all of a patient's
health care services?
What are the two broad 1) Private insurers
categories of health insurers? 2) Public programs / insurers
