Which of the Following Statements Is True About Health Insurance

question 47

Multiple Choice

Which of the following statements is true about health insurance contracts?

• A)Health insurance contracts do not provide coverage for medical expenses resulting from preexisting conditions.
• B)Most people receive their insurance coverage from individual policies that are provided by employers.
• C)The Consolidated Omnibus Budget Reconciliation Act (COBRA)was enacted as a legislative response to the increasing popularity of group health policies.
• D)Portable health insurance doesn't require insurance companies to provide coverage to people who have left a job.

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Definitions:

Return on Assets

A financial metric that indicates how profitable a company is relative to its total assets, demonstrating how efficient a company is at using its assets to generate earnings.

Unlevered Cost

The cost of an investment that does not include the effects of borrowing or leverage.

Annual Coupon

The annual interest payment made to bondholders, calculated as a percentage of the bond's face value.