Because Kevin Has a History of Back Problems, His New

question 35

Multiple Choice

Because Kevin has a history of back problems, his new health insurance plan will not cover any back-related injury until his policy has been in place for 12 months. This practice, which will not be legal as of 2014, is known as a(n)

• A) exclusionary coverage approval.
• B) preexisting condition clause.
• C) lifetime limit.
• D) denial of coverage.

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Definitions:

External Financing

External financing involves acquiring capital from outside sources to fund business operations and investments, such as through loans, issuing equity, or other forms of financial support from outside the company.

Total Production Costs

The combined costs of materials, labor, and overhead incurred in producing goods.