Health-Care Insurance Is Very Complex with the Multiple Types and Payment

question 9

Multiple Choice

Health-care insurance is very complex with the multiple types and payment plans.A new type of health-care insurance that is being introduced is one that gives a reduction in premiums if the patient takes responsibility for his or her health and stops smoking,loses weight,or engages in some type of health promotion.When the individual first reads about a policy like this and is in the process of considering a change in his or her insurance,which of the following phases of Lewin's Change Model is in process?

• A)Thinking
• B)Moving
• C)Unfreezing
• D)Refreezing

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Definitions:

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

ROE

The percentage of return on investments that shareholders directly benefit from, calculated by dividing net income by shareholder equity.

Compound Leverage Factor

A measurement used to describe the magnification of risk and return caused by using borrowed money or financial derivatives within an investment.

Financial Leverage

The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.