When a Company Is Unable to Pay Its Debts When

question 11

Multiple Choice

When a company is unable to pay its debts when they fall due and payable, this is referred to as:

• A) liquidation.
• B) receivership.
• C) administration.
• D) insolvency.

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Definitions:

Utilization Management (Review)

A process used in healthcare to optimize the use of resources and ensure that treatments provided to patients are appropriate, necessary, and efficient.

Managed Care

A health care delivery system designed to manage cost, utilization, and quality of health services.

Medical Necessity

A judgment by a healthcare provider that a specific treatment, test, or procedure is essential for diagnosing or treating a patient's condition in accordance with accepted standards of medical practice.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays a claim.