Which of the Following Statements Regarding the Health Insurance Portability

question 27

Multiple Choice

Which of the following statements regarding the Health Insurance Portability and Accountability Act is true?

• A)It guarantees the availability of group health insurance to small employers.
• B)It requires employers to provide at least a minimum level of health benefits prescribed by law.
• C)It requires giving credit for previous coverage with respect to any preexisting conditions exclusion found in a new health plan.
• D)It limits preexisting conditions exclusions to 90 days.

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Definitions:

Consolidated Balance Sheet

A balance sheet that provides a financial snapshot of a parent company and its subsidiaries as one single entity, consolidating all assets, liabilities, and equity.

Equipment

Tangible property used in the operation of a business that is not intended for sale in the ordinary course of business.

Acquisition Differential

The disparity between the acquisition cost and the fair market value of the identifiable net assets obtained.

Cumulative Preferred Shares

Type of preferred stocks where dividends accumulate if not paid in a given year, and must be paid out before common stock dividends can resume.