Which of the Following Statements Concerning the Financial Stability of Health

question 27

Multiple Choice

Which of the following statements concerning the financial stability of health care insurers is false?

• A)There has never been a financial collapse of a health insurance company.
• B)Federally-qualified HMOs must carry insurance to cover the unpaid bills of patients in the event they become insolvent.
• C)Private firms rate the financial stability of commercial health care insurers.
• D)In many states commercial health insurers are protected by state guarantee funds.

---

Definitions:

FX Reserves

Short for foreign exchange reserves; assets held on reserve by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy.

Economic Fortune

The state of prosperity or success, especially as determined by economic variables such as income, employment, and market position.

Exchange-rate System

The method by which a country manages its currency in relation to other currencies and determines its exchange rate.

Flexible System

An adaptable framework or methodology that can adjust to changes in environment or operation, often seen in production, management, or scheduling.