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Assessment >> Formal Assessment

Assessment: Risk Management and Estate Planning Web - Academic Partners Unit 2 Post-Assessment
(C117V13U2L0A25Q20)
Date Submitted: 05/19/2014 01:55:00 PM
Total Correct Answers: 20
Total Incorrect Answers: 0

Your Mark (total correct percentage): 100%

1 The NEXT 6 questions are based on the following information.

Marni and Oscar Meyer are in their early fifties and live in Halifax. Marni works part-time for a local
publishing company and is not covered by her employer's group health plan. Oscar works for a
consulting company that offers limited medical and dental insurance coverage. They have a twenty-
one year old son, Joey, who lives and goes to school in Vancouver. They try to visit Joey at least two
or three times a year for at least a week at a time. The Meyers are also planning a three-month trip
to Nepal for later this year.

During spring break last year, Joey and his girlfriend, Gigi, stayed with the Meyers in Halifax. Gigi is
a U.S. citizen and a resident of Seattle. One day, Gigi slipped on a rock in the Meyer's backyard and
broke her ankle. She required X-rays, an examination by a doctor, painkillers, and an overnight stay
in the hospital.

Now that they plan to travel out-of-province more often, Marni and Oscar are concerned about the
adequacy of their health insurance coverage. Although they plan to spend only about two or three
weeks a year travelling within Canada, they are unsure about the type of health coverage they
should have for the trip to Nepal. They would like to purchase an extended travel insurance plan
that offers all of the options.

Both Marni and Oscar are in excellent health. Unfortunately, Marni has developed a repetitive strain
injury over the last few years. The weekly physiotherapy sessions she goes to seem to help.
However, she is hopeful that a new treatment available only in Maine will cure her aching wrist
permanently.

The Meyers like to visit Joey in early April to take advantage of Vancouver's early spring. Although
they have yet to require any emergency medical services while in British Columbia, they are unsure
about their health insurance coverage in the event a problem arises. Which of the following
statements is TRUE?

Correct
The correct answer:The Meyers are covered by the health care plan of Nova Scotia, their province of residence,
for all necessary medical services, up to their province's limits.
Your answer:The Meyers are covered by the health care plan of Nova Scotia, their province of residence, for all
necessary medical services, up to their province's limits.
Solution:

The Meyers are covered by the health care plan of Nova Scotia, their province of residence, for all necessary
medical services, up to their province's limits.

(Concepts) According to the criteria of portability under the Canada Health Act, health coverage must be portable
from one province to another. Insured health services must be made available to Canadian residents temporarily
out of their own province.

(Choice B is true.) The Meyers are covered by the health care plan of Nova Scotia, their province of residence, for
all necessary medical services. They will pay no fees except for treatment that is over and above the services
covered by their provincial health care plan. As visitors to Vancouver, they do not need to apply for residency status
to receive coverage for basic medical services because they are still covered by the Nova Scotia system. So, the
Meyers are covered by the health care plan of Nova Scotia, their province of residence, for all necessary medical
services up to their province's limits.

2 After Gigi broke her ankle and was released from hospital, she immediately flew back home to
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Seattle at her own expense. Which of the following statements about Gigi's situation is TRUE?

Correct
The correct answer:Unless Gigi purchased travel insurance before leaving Seattle, she will be required to
personally pay for the full cost of her hospital stay.
Your answer:Unless Gigi purchased travel insurance before leaving Seattle, she will be required to personally pay
for the full cost of her hospital stay.
Solution:

Unless Gigi purchased travel insurance before leaving Seattle, she will be required to personally pay for the full cost
of her hospital stay.

(Concepts) Residence in a particular province is a prerequisite for obtaining benefits. Tourists and visitors from
outside of Canada must pay the full cost of any medical or hospital services.

(Choice D is true.) Because Gigi is a non-resident and is not financially dependent on the Meyers, she must pay the
full cost of all hospital services rendered. Marni cannot claim the cost of Gigi's hospital stay as an eligible medical
expense, because Gigi is not her dependant. So, unless Gigi purchased travel insurance before leaving Seattle she
will be required to personally pay for the full cost of her hospital stay.

3 Marni is having difficulty selecting an extended health care plan that best suits their situation.
Which of the following statements about extended health plans is FALSE?

Correct
The correct answer:Travel health coverage is designed to reimburse Canadian residents who decide to seek basic
medical services in the U.S.
Your answer:Travel health coverage is designed to reimburse Canadian residents who decide to seek basic medical
services in the U.S.
Solution:

Travel health coverage is not designed to reimburse Canadian residents who decide to seek basic medical services
in the U.S.

(Concepts) Travel health coverage is designed to provide emergency medical coverage while travelling outside the
province of residence. Basic medical services are covered under provincial health care plans. Travel insurance plans
cover medical emergencies only, not the costs associated with basic or elective medical services.

(Choice C is false.) So, travel health coverage is not designed to reimburse Canadian residents who decide to seek
basic medical services in the U.S.

4 The Meyers are thinking about buying some additional private health insurance. They would like a
plan that best suits their family's needs. Which of the following statements about private health
insurance plans is TRUE?

Correct
The correct answer:The Meyers may be able to use a private health insurance plan to pay the additional costs of
Marni's physiotherapy sessions not covered by the province.
Your answer:The Meyers may be able to use a private health insurance plan to pay the additional costs of Marni's
physiotherapy sessions not covered by the province.
Solution:

The Meyers may be able to use a private health insurance plan to pay the additional costs of Marni's physiotherapy
sessions not covered by the province.

(Concepts) Extended health plans (i.e., private insurance plans) are not permitted to insure benefits covered by the
provincial programs. Extended health benefit plans are designed to cover expenses that are in excess of provincial
coverage, or expenses that are not covered under the provincial plan, such as physiotherapists or other registered
specialists. Private health plans are widely available to those individuals who would like to extend their current
medical coverage.

(Choice C is true.) So, the Meyers may be able to use a private health insurance plan to pay the additional costs of
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Marni's physiotherapy sessions not covered by the province.

5 Marni would like your advice on the benefits of purchasing emergency travel health insurance.
Which of the following statements about emergency travel insurance is FALSE?

Correct
The correct answer:Marni's provincial health plan will cover 100% of any costs incurred for emergency medical
services while in Nepal.
Your answer:Marni's provincial health plan will cover 100% of any costs incurred for emergency medical services
while in Nepal.
Solution:

Marni's provincial health plan will not cover 100% of any costs incurred for emergency medical services while in
Nepal.

(Concepts) Provincial health plans place a limit or ceiling on the amount of coverage provided to Canadian residents
who require emergency health services while travelling outside of Canada. In such a case, an individual would be
responsible for any charges in excess of the limit imposed by the province. However, she may be able to purchase
coverage for this excess through extended health care insurance or travel health care insurance.

(Choice C is false.) Marni's provincial health care plan places a limit or ceiling on the amount of coverage provided
to her if she should require emergency health services while in Nepal. So, Marni's provincial health plan will not
cover 100% of any costs incurred for emergency medical services while in Nepal.

6 Which of the following costs are not likely to be covered by the Meyers' travel insurance plan?

Correct
The correct answer:The cost of a revolutionary laser eye treatment available in Nepal.
Your answer:The cost of a revolutionary laser eye treatment available in Nepal.
Solution:

Coverage for the total cost of a revolutionary laser eye treatment available in Nepal is not likely to be included in
the Meyers' travel insurance plan.

(Concepts) Benefits offered by different travel insurance plans vary widely. However, all travel health insurance
plans cover medical emergencies only, not elective services.

(Choice A) The laser eye treatment would be considered an elective medical service if it was not essential at the
time of Marni's emergency. So, coverage for the total cost of a revolutionary laser eye treatment available in Nepal
is not likely to be included in the Meyers' travel insurance plan.

7 The NEXT 8 questions are based on the following information.

Marty Kronby retired last month after working at the Bex Metals plant for 30 years. His wife,
Connie, retired three months ago. The day after his retirement, Marty and Connie flew to Florida for
the winter. They intend to maintain their residence in Canada and to spend 3 months of each year in
Florida.

Marty and Connie have one adult son, Ivor, who lives in a different province to them. Ivor is married
and has two small children. They want to visit Ivor and their grandchildren as often as possible and
may eventually sell their home and purchase a new one near Ivor and his family.

Soon after arriving in Florida, Connie and Marty made some new friends, Leo and Doris. Leo and
Doris are both American citizens and resident in Florida. Connie and Marty invite Leo and Doris to
visit them in Canada the following summer.

While Connie and Marty were in Florida, Ivor paid them a visit. Ivor did not purchase any private
health insurance prior to his trip. During his stay, Ivor suffered a blow to the head and was
admitted to a semi-private hospital ward in Florida. During his stay in hospital, he was administered
painkillers. While in the hospital, he consulted a plastic surgeon about elective surgery that was not
related to his head injury. When he returned to his Canadian province of residence, he visited his
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own doctor who prescribed more painkillers.

Now that they plan to travel out-of-province and out-of-country more, Marty and Connie are
concerned about adequate health care coverage. Their friends have told them horror stories about
their experiences with hospital bills in the United States. They are also concerned about adequate
coverage should they visit Ivor and the grandchildren for an extended period. They have collected a
pile of pamphlets on different health care plans offered by different providers, but cannot decide
what they need. Part of the problem is that they do not know what is covered and what is not
covered by their provincial health care plan.

Connie is in excellent health. Marty suffered a heart condition three years ago. He has had no
recurrences of the problem. They pay premiums for family coverage under their provincial health
care plan. When Connie was employed, her employer deducted $23 from her bimonthly paycheque
as premiums for the group extended health insurance plan. Marty's employer paid 50% of the
premiums for his group health care plan; Marty paid the other 50%. Marty and Connie cease to be
covered by their employers' plans three months after their respective retirements, but have
arranged to convert Marty's plan to an individual extended health plan for family coverage with the
same provider.

You are Marty and Connie’s financial advisor; they have asked you for some advice.

Connie and Marty contacted their doctors prior to travelling to Florida for the winter. Although they
were not required to visit their doctors to purchase health insurance or to renew their passports,
they wanted to make sure they were in good health for their own peace of mind. Which of the
following expenses are not covered under their provincial health care plan?

Correct
The correct answer:Advice given to Marty over the phone by his heart specialist.
Your answer:Advice given to Marty over the phone by his heart specialist.
Solution:

Advice given to Marty over the phone by his heart specialist is not covered under their provincial health care plan.

(Concepts) Advice administered over the phone by a physician is not covered by provincial health care plans.
Routine medical examinations and X-rays are covered, provided they are not for the purpose of qualifying for
insurance, employment, visas, etc. The cost of a hospital bed is covered for standard ward accommodation only.

(Choice B) So, advice given to Marty over the phone by his heart specialist is not covered under their provincial
health care plan.

8 Connie wants to live close to Ivor and her grandchildren. If Connie and Marty sell their home and
take up residence near their son, which of the following statements would be FALSE?

Correct
The correct answer:Connie and Marty would automatically be covered by the health care plan of their new
province three months after they take up residence there.
Your answer:Connie and Marty would automatically be covered by the health care plan of their new province three
months after they take up residence there.
Solution:

Connie and Marty would not automatically be covered by the health care plan of their new province three months
after they take up residence there.

(Concepts) All of the provinces require new residents to register for medical coverage under the provincial health
care plan. Registration under a hospital care plan may be automatic in provinces that have separate medical and
hospital care plans. The waiting period varies from province to province, but the maximum waiting period is three
months.

(Choice A is false.) So, Connie and Marty would not automatically be covered by the health care plan of their new
province three months after they take up residence there. Instead, they would have to register for coverage.

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9 Leo and Doris visited Marty and Connie in Canada. Doris cut her hand badly while chopping
vegetables in the kitchen and was taken to the local hospital by Marty. Which of the following
expenses incurred by Doris are covered by Connie's provincial health care plan?

Correct
The correct answer:None of the above.
Your answer:None of the above.
Solution:

None of the above expenses are covered by Connie's provincial health care plan.

(Concepts) Provincial health care plans do not cover the cost of medical or hospital services provided to visitors to
the country.

(Choice D) Leo and Doris are not residents of Canada. So, none of the above expenses are covered by Connie's
provincial health care plan.

10 Marty is having difficulty understanding how the different health insurance plans work together.
Which of the following statements is FALSE?

Correct
The correct answer:Some people opt out of provincial plans and elect to purchase private health insurance
instead.
Your answer:Some people opt out of provincial plans and elect to purchase private health insurance instead.
Solution:

Some people do not opt out of provincial plans and elect to purchase private health insurance instead.

(Concepts) Private health insurance plans are not permitted to insure benefits covered by the provincial plans. They
are only permitted to insure services over and above those provided by the provincial plans. Extended health care
insurance plans typically offer out-of-country coverage for limited periods.

(Choice B is false.) Marty is not permitted to opt out of his provincial plan. However, he can purchase private health
insurance to insure against things that are not covered by his provincial plan. So, some people do not opt out of
provincial plans and elect to purchase private health insurance instead.

11 Marty is bewildered by the array of brochures and information on different health insurance plans.
Which of the following statements is TRUE?

Correct
The correct answer:The primary purpose of a critical care provision included in some health care insurance plans
is to provide a lump-sum cash payment.
Your answer:The primary purpose of a critical care provision included in some health care insurance plans is to
provide a lump-sum cash payment.
Solution:

The primary purpose of a critical care provision included in some health care insurance plans is to provide a lump-
sum cash payment.

(Concepts) A critical illness or critical care plan included in some health care insurance plans is to provide a lump-
sum cash payment to help an insured person cope with a severe critical illness or condition. Provincial health care
plans provide coverage to Canadian residents while they are in their home province, out-of-province and out-of-
country, but only up to provincial limits. Extended health insurance plans provide coverage that is over and above
that provided by provincial health care plans, whether those medical expenses are incurred in the province of
residence, out-of-province or out-of-country. All travel health insurance plans are designed to cover unforeseen
medical emergencies only; they do not cover elective procedures. There are limits to the amounts and types of
services covered, and the maximum period of absence.

(Choice D is true.) So, it is true that the primary purpose of a critical care provision included in some health care
insurance plans is to provide a lump-sum cash payment.

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12 Connie wants to make sure that someone competent is able to care for Marty in the event that he
has a recurrence of his heart condition while he is in Florida for three months. She wants to
purchase private health insurance that offers all options. In this situation, which of the following
options is not provided by any private health insurance?

Correct
The correct answer:Coverage for the total cost of any anesthesia Marty may require.
Your answer:Coverage for the total cost of any anesthesia Marty may require.
Solution:

Coverage for the total cost of any anesthesia Marty may require is not covered by private health insurance.

(Concepts) Private health care insurance purchased by individuals can only provide coverage for services over and
above those provided by their provincial plan. All provincial plans cover the cost of an anesthesia administered in
the event of a medical emergency, up to provincial limits. However, a comprehensive private health insurance plan
would cover any anesthesia costs over and above the provincial limit, as well as the cost of returning home,
transporting a relative, or hiring an attendant on the advice of a physician.

(Choice C) Because Connie and Marty will only be absent from their home province for three months, they will still
be covered by their provincial health care plan to the extent the plan pays for a service. All provincial plans cover
the cost of anesthesia administered in the event of a medical emergency, up to certain limits. So, the total cost of
any anesthesia Marty may require would not be covered by any private health insurance plan.

13 After Ivor returned from his visit to Marty and Connie in Florida, he presented the provincial health
care authority in his province of residence with itemized receipts for all of his medical expenses. For
which of the following expenses would Ivor be reimbursed?

Correct
The correct answer:All or a portion of the cost of the painkillers given to him while in hospital in Florida.
Your answer:All or a portion of the cost of the painkillers given to him while in hospital in Florida.
Solution:

All or a portion of the cost of the painkillers given to him while in hospital in Florida will be reimbursed under his
provincial health care plan.

(Concepts) All of the provincial health care plans cover the cost of drugs administered in a hospital for a medical
emergency to the extent such costs are covered by the plan. This may be all or a portion of the actual cost of the
drugs. Drugs prescribed to an outpatient are not covered by provincial health plans. Out-of-country elective
procedures are not covered by provincial health care plans. In the case of an out-of-country medical emergency, all
of the provincial health care plans will cover the cost of a stay in a standard hospital ward, up to provincial limits.

(Choice B) The drugs that Ivor received in Florida were prescribed to him while he was an inpatient at the hospital,
while the drugs that he received in Canada were prescribed when he was an outpatient. So, all or a portion of the
cost of the painkillers given to him while in hospital in Florida will be reimbursed under his provincial health care
plan.

14 Marty is completing his income tax return. Which of the following items cannot be included in
Marty's list of eligible medical expenses for the federal tax credit?

Correct
The correct answer:The premiums he paid for his provincial health care plan.
Your answer:The premiums he paid for his provincial health care plan.
Solution:

The premiums Marty paid for his provincial health care plan cannot be included in Marty's list of eligible medical
expenses for the federal tax credit.

(Concepts) Premiums paid for government health insurance plans are not eligible for the medical expenses federal
tax credit. Premiums paid for extended health insurance or travel health insurance can be claimed as an eligible

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medical expense, including premiums for employer-sponsored group plans if the premiums are deducted from after-
tax pay. Either spouse can claim the medical expenses of the entire family on his or her return.

(Choice C) Marty can include as a medical expense the premiums he paid for his group extended health insurance
plan, the amount Connie's employer deducted from her paycheque as premiums for the group extended health
insurance plan, and the premiums Connie paid for her emergency travel health insurance plan. So, only the
premiums Marty paid for his provincial health care plan cannot be included in Marty's list of eligible medical
expenses for the federal tax credit.

15 In respect to government health care, which of the following is not one of the five principles of the
Canada Health Act?

Correct
The correct answer:Accountability.
Your answer:Accountability.
Solution:

Accountability is not one of the five principles of the Canada Health Act.

(Concepts) The five principles arising from the Canada Health Act are public administration, comprehensiveness,
universality, accessibility, and portability.

(Choice C) So, accountability is not one of the five principles of the Canada Health Act.

16 Joel has many clients who are moving between provinces this year. He is reviewing the residency
requirements for the continuation of their health care coverage. Which of the following statements
about residency requirements and provincial health care plans is TRUE?

Correct
The correct answer:To ensure a continuance in health coverage, Joel should advise any of his clients who move to
a new province to register immediately with the new province's health care plan.
Your answer:To ensure a continuance in health coverage, Joel should advise any of his clients who move to a new
province to register immediately with the new province's health care plan.
Solution:

To ensure a continuance in health coverage, Joel should advise any of his clients who move to a new province to
register immediately with the new province's health care plan.

(Concepts) In all provinces participating in the health care program, residence in that particular province or territory
is a prerequisite for obtaining benefits. Tourists and visitors must pay the full cost of any medical or hospital
services. When relocating between provinces, the maximum waiting period for coverage for Canadian residents is
three months, not six months. People who move between provinces need to check whether they are covered by the
health care plan of the province from which they moved until they are covered by the plan of their new province of
residence. New arrivals to Canada usually have a shorter waiting period for coverage than those moving between
provinces.

(Choice D is true.) So, to ensure a continuance in health coverage, Joel should advise any of his clients who move
to a new province to register immediately with the new province's health care plan.

17 Jackie wants to travel to New York for a facelift by a famous plastic surgeon. Which of the following
is the most suitable method of financing the procedure?

Correct
The correct answer:Using her personal savings.
Your answer:Using her personal savings.
Solution:

Using her personal savings would be the most suitable method for Jackie to finance the facelift.

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(Concepts) Private health care insurance plans do not cover elective procedures. Provincial health care plans may
cover out-of-country medical procedures, but only if approval is applied for in writing prior to the procedure, the
procedure is necessary and it cannot be obtained in Canada.

(Choice C) Jackie wants to have an elective procedure carried out by a surgeon outside of Canada. This would not
be covered by her provincial health care plan or private health insurance. So, using her personal savings would be
the most suitable method for Jackie to finance the facelift.

18 Misha is preparing his income tax return. He wants to be able to claim the medical expense tax
credit. Which of the following statements is TRUE?

Correct
The correct answer:Premiums paid to government health insurance plans are not eligible for the federal medical
expense tax credit.
Your answer:Premiums paid to government health insurance plans are not eligible for the federal medical expense
tax credit.
Solution:

Premiums paid to government health insurance plans are not eligible for the federal medical expense tax credit.

(Concepts) Premiums paid to private health care plans can be claimed as eligible medical expenses for the purpose
of the medical expense tax credit. Only eligible medical expenses that were paid, but not reimbursed by any health
insurance plan, can be claimed for the credit. Premiums paid by an employer on behalf of an employee are not
considered a taxable benefit to the employee.

(Choice B is true.) So, premiums paid to government health insurance plans are not eligible for the federal medical
expense tax credit.

19 Jed requires arthroscopic surgery on his knee. Because of recent cutbacks in medical services, his
local hospital does not offer the procedure Jed requires. While the procedure is available in another
distant Canadian town, he decided to travel to the U.S. to have the surgery. Which of the following
statements about claiming travel expenses for tax purposes are TRUE?

Correct
The correct answer:Jed can only claim the costs of travel to the U.S. if the treatment is not available elsewhere in
Canada.
Your answer:Jed can only claim the costs of travel to the U.S. if the treatment is not available elsewhere in
Canada.
Solution:

Jed can only claim the costs of travel to the U.S. if the treatment is not available elsewhere in Canada.

(Concepts) If medical treatment is not available locally, an individual may be able to claim the cost of travelling to
get the treatment somewhere else as an eligible medical expense, provided he or she had to travel more than 40
kilometres. Also, if he or she had to travel more than 80 kilometres, he or she can claim reasonable costs for meals
and accommodation. If medical treatment is available in Canada, an individual cannot claim the cost of travelling
out of the country to be treated. However, if the treatment is not available in Canada, then the individual may claim
the cost of travelling out of the country to be treated as an eligible medical expense.

(Choice A is true.) The surgery that Jed needs is not available at the local hospital, but it is available elsewhere in
Canada. Jed can only claim the costs of travel to the U.S. if the treatment is not available elsewhere in Canada.

20 Bruce is insured under a long-term care insurance contract. Which of the following conditions would
entitle him to claim benefits?

Correct
The correct answer:He frequently and seriously loses his memory.
Your answer:He frequently and seriously loses his memory.

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Solution:

Bruce would be entitled to claim benefits under his long term care policy if he frequently and seriously loses his
memory.

(Concepts) Long-term care insurance benefits are usually payable in the case of cognitive impairment (i.e., the
inability to think, perceive, reason, or remember) or if the insured can no longer perform any two of the six
activities of daily living (i.e., bathing, eating, dressing, toileting, continence or transferring positions of the body)

(Choice B) A serious loss of memory would be considered to be a cognitive impairment. So, Bruce would be entitled
to claim benefits under his long term care policy if he frequently and seriously loses his memory.

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