D363 Personal Finance - Set 4 - Part 2

Correct Answer: The amount that health care providers in a specific area typically charge for similar services

The UCR rate is the standard charge for a specific medical service in a particular geographic area, used by insurers to determine reimbursement amounts.

Correct Answer: A system that limits the conditions under which care can be obtained to control costs

Managed care is a system designed to control healthcare costs by setting rules on how and when care can be provided, often involving networks of approved providers.

Correct Answer: A group of doctors or hospitals working together to provide coordinated care

An ACO is a healthcare organization in which doctors, hospitals, and other providers collaborate to deliver efficient, high-quality care, with the goal of reducing costs.

Correct Answer: Pay for health care services using pretax dollars

An HSA is a tax-advantaged account where individuals can set aside pretax income to pay for qualified health expenses, reducing taxable income and saving money.

Correct Answer: To allow employees to stay on their employers health plan after leaving a job

COBRA allows former employees to continue receiving health insurance coverage through their employers group plan for a limited time after they leave the job.

Correct Answer: A specific dollar amount you pay for certain services, such as doctor visits

A copayment is a fixed amount you pay each time you receive certain covered services, such as doctor visits or prescriptions, under your health insurance plan.

Correct Answer: Non-medical assistance with daily living activities, such as eating and bathing

Custodial care is non-medical care provided to help individuals with daily activities such as eating, bathing, or dressing, typically covered by long-term care insurance.

Correct Answer: To offer financial support to disabled workers who cannot work at any job

Social Security Disability Income Insurance provides income to workers who are unable to perform any type of job due to a total disability.

Correct Answer: A policy that provides benefits only if the insured cannot perform any job

An any-occupation policy pays disability benefits only if the insured is unable to perform any type of job, not just their previous occupation.

Correct Answer: A clause that reduces benefits if the insured recovers partially from a disability

A residual clause in a disability insurance policy provides for partial benefits if the insured can return to work in a limited capacity, rather than a full disability.

Correct Answer: Coverage for legal liability when someone else is injured on the insureds property

General liability protection in homeowner's insurance covers the insured for legal responsibility when someone else is injured or suffers losses on their property.

Correct Answer: The policyholder pays an initial portion of any loss before the insurer covers the rest

A deductible is the amount the policyholder must pay out of pocket before the insurer will pay for any covered loss.

Correct Answer: A risk that involves the potential for both gain and loss

Speculative risk refers to situations where there is a chance of both gaining and losing, such as with investments or business ventures.

Correct Answer: The additional return an investor expects for taking on additional risk

The risk premium is the extra return an investor expects to receive for taking on the risk of an investment compared to a risk-free investment like a government bond.

Correct Answer: The loan must be repaid on a specific date

Fixed maturity means that the borrower must repay the principal amount of a debt investment, such as a bond, by a specific date in the future.

Correct Answer: Ownership shares in a company, such as stocks

Equities refer to ownership stakes in a company, typically in the form of stocks, where investors seek capital gains from price appreciation.

Correct Answer: A trust that takes effect during the grantors lifetime

A living trust is a legal arrangement that becomes effective while the grantor is still alive, allowing assets to be managed for the grantors benefit and eventually for heirs.

Correct Answer: A trust that becomes effective upon the grantors death as per the terms of their will

A testamentary trust is a trust created through a will and takes effect only after the grantor has passed away, often used to manage assets for beneficiaries.

Correct Answer: A non-legal document that contains personal preferences, such as funeral arrangements

A letter of last instructions is a non-legal document that provides personal preferences and guidance for surviving family members, such as funeral plans.

Correct Answer: The right to full ownership of employer contributions after a certain period of service

Vesting ensures that an employee gains full ownership of employer contributions to their retirement account after meeting certain requirements, typically years of service.