Consumer Experts Generally Recommend All of the Following When Shopping

question 40

Multiple Choice

Consumer experts generally recommend all of the following when shopping for individual health insurance EXCEPT

• A)Insure for the large loss.
• B)Avoid limited policies.
• C)Consider individual insurance before group insurance.
• D)Use deductibles and elimination periods to reduce premiums.

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Definitions:

Tax Rate

The rate at which taxes are levied on an individual or a company's income.

Equity Method

An accounting technique used to record investments in other companies, where the investment is significant but does not result in full control or majority ownership, typically 20% to 50% of the investee's voting stock.

Cost Method

An accounting method used to value an investment at its original purchase cost, adjusted for dividends, stock splits, and stock dividends.

Intercompany Interest Revenues

Income earned by one entity within a corporate group for lending funds to another entity within the same group, typically eliminated during the consolidation process for financial reporting.