Module 113 Final Review
Questions and Answers
- 1.
If an insured is in disagreement with the insurer for the settlement of a claim, a suit must begin within
- A.
1 year
- B.
2 years
- C.
3 years
- D.
5 years
Correct Answer
C. 3 yearsExplanation
If an insured is in disagreement with the insurer for the settlement of a claim, a suit must begin within 3 years. This means that if the insured and insurer cannot come to an agreement on the claim, the insured must file a lawsuit within 3 years from the date of the disagreement. After this time period, the insured may lose their right to pursue legal action against the insurer. It is important for the insured to be aware of this time limit and take appropriate action within the specified timeframe.Rate this question:
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- 2.
If a payment problem develops with an insurance company and the company ignores claims and exceeds time limits to pay a claim, it is prudent to contact the
- A.
Federal insurance commissioner
- B.
State insurance commissioner
- C.
State insurance federation
- D.
Department of public service
Correct Answer
B. State insurance commissionerExplanation
If a payment problem arises with an insurance company and they fail to address claims and surpass the time limits for claim payment, it is advisable to reach out to the state insurance commissioner. The state insurance commissioner is responsible for regulating insurance companies within a specific state and ensuring they comply with state laws and regulations. They can investigate complaints, mediate disputes, and take appropriate actions against the insurance company if necessary. Therefore, contacting the state insurance commissioner would be the appropriate course of action in this situation.Rate this question:
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- 3.
The document together with the payment voucher that is sent to a physician who has accepted assignment of benefits is referred to as a/an
- A.
EOB
- B.
EOMB
- C.
MRA
- D.
MPS
Correct Answer
A. EOBExplanation
When a physician accepts assignment of benefits, it means that they agree to receive direct payment from the insurance company for the services provided to the patient. In this case, the document that is sent to the physician along with the payment voucher is referred to as an Explanation of Benefits (EOB). The EOB provides a detailed breakdown of the services rendered, the amount billed, the amount covered by insurance, and any remaining balance that may be the responsibility of the patient.Rate this question:
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- 4.
When receiving payment from a private insurance carrier, check the amount of payment on the EOB with the
- A.
Patient's financial accounting record
- B.
Practice's day sheet
- C.
Copy of the CMS-1500 form
- D.
Patients's insurance contract
Correct Answer
A. Patient's financial accounting recordExplanation
The correct answer is to check the amount of payment on the patient's financial accounting record. This is because the financial accounting record keeps track of all the payments received from the private insurance carrier. By comparing the amount mentioned on the Explanation of Benefits (EOB) with the patient's financial accounting record, one can ensure that the correct payment has been received. The other options listed, such as the practice's day sheet, copy of the CMS-1500 form, or the patient's insurance contract, may not provide the accurate payment information needed for verification.Rate this question:
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- 5.
An insurance claims register provides a/an
- A.
File containing the name and address of all insurance companies
- B.
Follow-up report that is sent to the insurance companies
- C.
Follow-up procedures for insurance claims
- D.
Practice analysis
Correct Answer
C. Follow-up procedures for insurance claimsExplanation
An insurance claims register provides follow-up procedures for insurance claims. This means that it includes a systematic process or set of steps that are followed after an insurance claim has been submitted. These procedures may include tasks such as verifying the claim, investigating the details, communicating with the insured party, processing the claim, and making the necessary payments or settlements. The register helps to ensure that all claims are properly handled and followed up on, allowing for efficient and effective claims management within the insurance company.Rate this question:
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- 6.
Pending or resubmitted insurance claims may be tracked through a
- A.
Tickler file
- B.
Clinical file
- C.
Data file
- D.
Patient file
Correct Answer
A. Tickler fileExplanation
A tickler file is a system used to track pending or resubmitted insurance claims. It is a file or set of files that contains reminders or prompts for future actions or follow-ups. In the context of insurance claims, a tickler file would be used to keep track of claims that are still pending or need to be resubmitted. This helps ensure that these claims are not forgotten or overlooked and allows for timely follow-up and resolution. A tickler file is a useful tool for organizing and managing tasks and deadlines in various industries, including insurance.Rate this question:
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- 7.
A follow-up effort made to an insurance company to locate the status of an insurance claim is called a/an
- A.
Inquiry
- B.
Tracer
- C.
Rebill
- D.
Both inquiry and tracer
Correct Answer
D. Both inquiry and tracerExplanation
Both an inquiry and a tracer are follow-up efforts made to an insurance company to locate the status of an insurance claim. An inquiry is a request for information or clarification about the claim, while a tracer is a more formal and detailed investigation into the claim's status. Both methods aim to gather information and ensure the claim is being processed correctly.Rate this question:
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- 8.
If an insurance claim has been lost by the insurance carrier, the procedure(s) to follow is to
- A.
Ask if there is a backlog of claims at the insurance office
- B.
Submit a copy of the original claim
- C.
Verify the correct mailing address
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
If an insurance claim has been lost by the insurance carrier, the procedure(s) to follow would be to ask if there is a backlog of claims at the insurance office, submit a copy of the original claim, and verify the correct mailing address. These steps are necessary to ensure that the claim is properly processed and not lost again. By asking about a backlog, it allows the insured to understand if there may be delays in processing claims. Submitting a copy of the original claim helps provide the necessary documentation for the insurance carrier to review. Verifying the correct mailing address ensures that any future correspondence or payments are sent to the correct location. Therefore, all of the above options are necessary in this situation.Rate this question:
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- 9.
An insurance claim with an invalid prodecure code would be
- A.
Paid
- B.
Rejected
- C.
Suspended
- D.
Denied
Correct Answer
B. RejectedExplanation
If an insurance claim has an invalid procedure code, it would be rejected. This means that the claim will not be accepted or approved for payment by the insurance company. The invalid procedure code indicates that the medical service or treatment being claimed is not covered or recognized by the insurance policy. As a result, the claim is denied and the policyholder will not receive any reimbursement or coverage for that particular procedure.Rate this question:
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- 10.
What should you do if an insurance carrier requests information about another insurance carrier?
- A.
Provide the information
- B.
Call the patient and advise the patient to contact the insurance carrier with the requested information
- C.
The carrier should contact the other carrier and coordinate benefits
- D.
None of the above
Correct Answer
A. Provide the informationExplanation
If an insurance carrier requests information about another insurance carrier, the correct action to take is to provide the information. This means that you should gather the necessary details and share them with the requesting insurance carrier. This could include policy numbers, coverage details, and any other relevant information that may assist in coordinating benefits or resolving any issues between the two carriers. By providing the information, you are facilitating effective communication and cooperation between the insurance carriers.Rate this question:
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- 11.
An insurance claim with a bundled service would be
- A.
Paid
- B.
Rejected
- C.
Suspended
- D.
Denied
Correct Answer
A. PaidExplanation
When an insurance claim has a bundled service, it means that multiple services or treatments are combined into a single claim. In this case, the insurance company would pay for the bundled service, as long as it meets the policy's coverage criteria.Rate this question:
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- 12.
What should be done if an insurance claim denial is received because a billed service was not a program benefit?
- A.
Rebill with a letter of explanation from the physician
- B.
Write off the amount on the patient's ledger
- C.
Send the patient a statement with a notation of the response from the insurance company
- D.
Appeal the decision with a statement from the physician
Correct Answer
C. Send the patient a statement with a notation of the response from the insurance companyExplanation
If an insurance claim denial is received because a billed service was not a program benefit, the appropriate action would be to send the patient a statement with a notation of the response from the insurance company. This is necessary to inform the patient about the denial and provide them with an explanation from the insurance company. It also allows them to understand the reason for the denial and take necessary actions, such as appealing the decision or seeking alternative payment options.Rate this question:
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- 13.
What should be done if an insurance company denies a service stating it was not medically necessary and the physician believes it was?
- A.
Rebill with a letter of explanation from the physician
- B.
Write off the amount on the patient's ledger
- C.
Send the patient a statement with a notation of the response from the insurance company
- D.
Appeal the decision with a statement from the physician
Correct Answer
D. Appeal the decision with a statement from the physicianExplanation
If an insurance company denies a service stating it was not medically necessary and the physician believes it was, the appropriate action would be to appeal the decision with a statement from the physician. This is because the physician can provide additional information and evidence to support their belief that the service was indeed medically necessary. By appealing the decision, there is a chance that the insurance company may reconsider and approve the claim.Rate this question:
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- 14.
When downcoding occurs, payment will
- A.
Not be affected
- B.
Be denied
- C.
Be less
- D.
Be more
Correct Answer
C. Be lessExplanation
When downcoding occurs, payment will be less. Downcoding refers to the process of reducing the level or complexity of a billed service by a healthcare provider. This can happen when the documentation or medical records do not support the level of service that was initially billed. As a result, the insurance company or payer may reimburse the provider at a lower rate, leading to a decrease in payment.Rate this question:
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- 15.
If an insurance company admits that a patient signed an assignment of benefits document and that it inadvertently paid the patient instead of the physician, the insurance company should
- A.
Advise the physician to write off the amount as a bad debt
- B.
Pay the physician within 2 to 3 weeks and honor the assignment even before the company recovers their money from the patient
- C.
Pay the physician witin 2 to 3 weeks after recovering the money from the patient
- D.
Notify the physician of the error and indicate in a letter that it will never happen again
Correct Answer
B. Pay the physician within 2 to 3 weeks and honor the assignment even before the company recovers their money from the patientExplanation
The correct answer is to pay the physician within 2 to 3 weeks and honor the assignment even before the company recovers their money from the patient. This is because the insurance company admits that they made a mistake by paying the patient instead of the physician. Therefore, it is their responsibility to rectify the error by paying the physician promptly and honoring the assignment of benefits. Waiting for the company to recover the money from the patient before paying the physician would be an unnecessary delay and unfair to the physician.Rate this question:
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- 16.
The total number of levels of redetermination that exist in the Medicare program is
- A.
Two
- B.
Three
- C.
Five
- D.
Six
Correct Answer
C. FiveExplanation
In the Medicare program, there are five levels of redetermination. Redetermination is the process of reviewing and reconsidering a claim or decision that has been made. These levels include reconsideration by a Qualified Independent Contractor (QIC), hearing by an Administrative Law Judge (ALJ), review by the Medicare Appeals Council (MAC), review by a federal district court, and review by a federal appeals court. These levels provide multiple opportunities for a claim or decision to be reviewed and potentially changed.Rate this question:
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- 17.
The first level of appeal in the Medicare program is
- A.
Redetermination
- B.
Inquiry
- C.
Fair hearing
- D.
Appeals council review
Correct Answer
A. RedeterminationExplanation
The first level of appeal in the Medicare program is redetermination. This means that if a Medicare claim is denied, the beneficiary or their healthcare provider can request a redetermination, which is a review of the claim by a different Medicare claims examiner. During the redetermination process, additional information or evidence can be submitted to support the claim. This level of appeal allows for a reconsideration of the initial decision and provides an opportunity to address any errors or misunderstandings that may have occurred.Rate this question:
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- 18.
The correct method to send documents for a Medicare reconsideration (Level 2) is by
- A.
Certified mail with return receipt requested
- B.
Certified mail
- C.
Standard mail
- D.
Overnight mail
Correct Answer
A. Certified mail with return receipt requestedExplanation
The correct method to send documents for a Medicare reconsideration (Level 2) is by certified mail with return receipt requested. This method ensures that the sender has proof of mailing and delivery, as the recipient must sign for the mail and the sender receives a receipt as evidence. This is important for important and time-sensitive documents like Medicare reconsideration requests, as it provides a record of the communication and helps to ensure that the documents are received and processed in a timely manner.Rate this question:
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- 19.
A request for a Medicare administrative law judge hearing can be made if the amount in controversy is at least
- A.
$100
- B.
$250
- C.
$350
- D.
$500
Correct Answer
A. $100Explanation
A request for a Medicare administrative law judge hearing can be made if the amount in controversy is at least $100. This means that if the disputed amount between the Medicare beneficiary and the Medicare program is equal to or greater than $100, the beneficiary has the right to request a hearing before an administrative law judge. This allows the beneficiary to present their case and have a fair review of the decision made by the Medicare program.Rate this question:
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- 20.
How many levels of review exist for TRICARE appeal procedures?
- A.
One
- B.
Two
- C.
Three
- D.
Five
Correct Answer
C. ThreeExplanation
TRICARE appeal procedures have three levels of review. This means that if an individual is dissatisfied with the decision made at the initial level, they have the option to request a review at two additional levels. This allows for a thorough and fair assessment of the appeal, ensuring that all parties involved have the opportunity to present their case and have it reviewed multiple times if necessary.Rate this question:
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- 21.
TRICARE appeals are normally resolved within
- A.
2 weeks
- B.
30 days
- C.
60 days
- D.
90 days
Correct Answer
C. 60 daysExplanation
TRICARE appeals are typically resolved within 60 days. This means that once an appeal is filed, it generally takes up to 60 days for a decision to be made and communicated to the individual. This timeframe allows for a thorough review of the appeal and ensures that a fair and accurate decision is reached. It also provides the necessary time for any additional information or documentation to be gathered and considered before reaching a resolution.Rate this question:
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- 22.
In a TRICARE case, a request for an independent hearing may be pursued if the amount in question is
- A.
$100 or more
- B.
$300 or more
- C.
$500 or more
- D.
$1000 or more
Correct Answer
B. $300 or moreExplanation
In a TRICARE case, a request for an independent hearing may be pursued if the amount in question is $300 or more. This means that if the disputed amount is $300 or higher, the person involved in the TRICARE case has the right to request an independent hearing to further discuss and resolve the issue.Rate this question:
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- 23.
Cash flow is
- A.
The amount of money available in the cash drawer
- B.
The amount of money taken into the office in a given period of time
- C.
The ongoing availability of cash in the medical practice
- D.
The amount of money in accounts receivable
Correct Answer
C. The ongoing availability of cash in the medical practiceExplanation
Cash flow refers to the ongoing availability of cash in the medical practice. It represents the movement of money into and out of the practice, including revenue from patients, insurance payments, and other sources, as well as expenses such as salaries, rent, and supplies. It is important for the practice to have a positive cash flow to ensure smooth operations, pay bills on time, and have funds available for investments or emergencies. Monitoring and managing cash flow is crucial for financial stability and success in the medical practice.Rate this question:
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- 24.
When insurance carriers do not pay claims in a timely manner, what effect does this have on the medical practice
- A.
Increased cash flow
- B.
Decreased cash flow
- C.
Decreased accounts receivable
- D.
Decreased copayments
Correct Answer
B. Decreased cash flowExplanation
When insurance carriers do not pay claims in a timely manner, it has a negative effect on the medical practice's cash flow. This means that the practice will have less money coming in, which can lead to financial difficulties. It may result in delays in paying suppliers and employees, difficulty in purchasing necessary equipment or supplies, and overall financial instability. This can also impact the ability of the practice to provide quality care to patients and meet their needs effectively.Rate this question:
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- 25.
What does the insurance billing specialist need to monitor to be able to evaluate the effectiveness of the collection process
- A.
Number of statements sent
- B.
Number of claims processed
- C.
Accounts payable
- D.
Accounts receivable
Correct Answer
D. Accounts receivableExplanation
The insurance billing specialist needs to monitor accounts receivable in order to evaluate the effectiveness of the collection process. This is because accounts receivable represents the amount of money owed to the company by its customers for services provided. By monitoring accounts receivable, the specialist can track the amount of outstanding payments and determine if the collection process is efficient in collecting these payments.Rate this question:
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- 26.
The average amount of accounts receivable should be
- A.
1.5 to 2 times the charges for 1 month of services
- B.
2 to 2.5 times the charges for 1 month of services
- C.
2.5 to 3 times the charges for 1 month of services
- D.
3 to 3.5 times the charges for 1 month of services
Correct Answer
A. 1.5 to 2 times the charges for 1 month of servicesExplanation
The correct answer is 1.5 to 2 times the charges for 1 month of services. This means that the average amount of accounts receivable should be between 1.5 and 2 times the charges for 1 month of services. This range allows for a reasonable amount of outstanding payments while still maintaining a healthy cash flow for the business. Having a higher average amount of accounts receivable could indicate that the business is struggling to collect payments, while having a lower average could suggest that the business is not maximizing its revenue potential.Rate this question:
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- 27.
Accounts that are 90 days or older should not exceed
- A.
5% to 11% of the total accounts receivable
- B.
10% to 15% of the total accounts receivable
- C.
15% to 18% of the toal accounts receivable
- D.
20% to 25% of the toal accounts receivable
Correct Answer
C. 15% to 18% of the toal accounts receivableExplanation
Accounts that are 90 days or older should not exceed 15% to 18% of the total accounts receivable. This means that a company should aim to keep the amount of overdue accounts within this range to maintain a healthy cash flow and minimize the risk of bad debts. If the percentage exceeds 18%, it may indicate a problem with the company's credit policies or collection procedures, and if it falls below 15%, it may suggest that the company is too strict in its credit policies, potentially losing out on sales opportunities.Rate this question:
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- 28.
What should be done to inform a new patient of office fees and payment policies
- A.
Send a patient information brochure
- B.
Send a confirmation letter
- C.
Discuss fees and policies at the time of the initial contact
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
To inform a new patient of office fees and payment policies, all of the above options should be done. Sending a patient information brochure can provide detailed information about the fees and policies, allowing the patient to review it at their convenience. Sending a confirmation letter can serve as a reminder and also include the necessary information about fees and policies. Finally, discussing fees and policies at the time of the initial contact ensures that the patient is aware of the financial aspects before proceeding with any treatment.Rate this question:
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- 29.
The patient is likely to be the most cooperative in furnishing details necessary for a complete registration process
- A.
Before any services are provided
- B.
Right after services are provided
- C.
At the time of the first statement
- D.
In a follow-up telephone call
Correct Answer
A. Before any services are providedExplanation
Before any services are provided, the patient is likely to be the most cooperative in furnishing details necessary for a complete registration process. This is because at this stage, the patient has not yet received any services or treatment, so they are more likely to be focused on providing accurate and complete information for the registration process. Once services are provided or after the first statement, the patient may be preoccupied with their medical condition or the treatment they have received, making it less likely for them to be as cooperative in providing the necessary details. Similarly, in a follow-up telephone call, the patient may not have the same level of attention or willingness to provide the required information as they would have before any services were provided.Rate this question:
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- 30.
The reason for a fee reduction must be documented in the patient's
- A.
Financial accounting record
- B.
Medical record
- C.
Insurance file
- D.
Registration
Correct Answer
A. Financial accounting recordExplanation
The reason for a fee reduction must be documented in the patient's financial accounting record because this record is specifically used to track and document all financial transactions related to the patient's healthcare services. It includes details about fees charged, payments made, and any adjustments or discounts applied. By documenting the reason for a fee reduction in the financial accounting record, healthcare providers can ensure transparency and accuracy in their financial records, as well as provide a clear audit trail for any future reference or verification.Rate this question:
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- 31.
Professional courtesy means
- A.
Applying a discount (percentage) to the entire fee
- B.
Applying a discount after the insurance company has paid its portion
- C.
Writing off the balance of an account after the insurance company has paid its portion
- D.
Making no charge to anyone, patient or insurance company, for medical care
Correct Answer
D. Making no charge to anyone, patient or insurance company, for medical careExplanation
Professional courtesy means making no charge to anyone, patient or insurance company, for medical care. This term refers to a situation where a healthcare provider offers their services without expecting any payment in return. It is often extended to other healthcare professionals or their family members as a professional courtesy. This practice is based on the idea of mutual respect and support within the healthcare community. By providing medical care without charge, professionals demonstrate their commitment to the well-being of their colleagues and the overall healthcare system.Rate this question:
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- 32.
When collecting fees, your goal should always be to
- A.
Leave the impression that you are a nice person
- B.
Collect at least one half the fee
- C.
Collect the full amount
- D.
Collect as much as possible
Correct Answer
C. Collect the full amountExplanation
When collecting fees, the goal should always be to collect the full amount. This ensures that the business or organization receives the full payment for their services or products. Collecting only half the fee may result in financial loss, and collecting as much as possible may be seen as unethical or unfair. Leaving the impression of being a nice person is important, but it should not compromise the collection of the full amount owed.Rate this question:
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- 33.
A medical practice has a policy of billing only for charges in excess of $50. When the medical assistant requests $45 payment for the office visit, the patient states, "just bill me." How should the medical assistant respond
- A.
Say, "all right" and bill the patient
- B.
State the office policy and ask for the full fee
- C.
Indicate that because it is such a small sum, it can be paid later
- D.
Ask that the payment be mailed to the office
Correct Answer
B. State the office policy and ask for the full feeExplanation
The medical assistant should state the office policy and ask for the full fee because the policy of the medical practice is to bill only for charges in excess of $50. Therefore, the patient should be informed about the policy and asked to pay the full fee for the office visit.Rate this question:
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- 34.
The most common method of payment in the medical office is
- A.
Personal check
- B.
Credit card
- C.
Cash
- D.
Debit card
Correct Answer
A. Personal checkExplanation
The most common method of payment in the medical office is a personal check. This is because personal checks are widely accepted and provide a convenient way for patients to pay for their medical expenses. Additionally, personal checks offer a paper trail and can be easily tracked for record-keeping purposes. They also eliminate the need for patients to carry large amounts of cash or rely solely on electronic payment methods such as credit or debit cards.Rate this question:
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- 35.
When the physician's office receives notice that a check was not honored, the first thing to do is to
- A.
Send a NSF demand letter
- B.
File a claim in small claims court
- C.
Call the bank or the patient
- D.
Notify the patient that future payments need to be in the form of cash or money orders
Correct Answer
C. Call the bank or the patientExplanation
When the physician's office receives notice that a check was not honored, the first thing to do is to call the bank or the patient. This is necessary to clarify the situation and determine the reason for the dishonored check. By contacting the bank or the patient, the physician's office can gather information about any potential issues with the check, such as insufficient funds or an error in processing. This step allows the office to address the problem promptly and find a resolution, whether it involves requesting a new payment method or resolving any banking issues.Rate this question:
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- 36.
Accounts receivable are usually aged in time periods of
- A.
1,4,6, and 8 weeks
- B.
30,60,90, and 120 days
- C.
1,2,3, and 6 months
- D.
30,60,90,120, and 180
Correct Answer
B. 30,60,90, and 120 daysExplanation
Accounts receivable are usually aged in time periods of 30, 60, 90, and 120 days. This means that the company categorizes its outstanding invoices based on how long they have been outstanding. By aging the accounts receivable, the company can track the aging of its receivables and identify any potential issues with collecting payment from customers. The aging process helps the company prioritize its collection efforts and take appropriate actions to ensure timely payment.Rate this question:
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- 37.
Messages included on statements to promote payment are called
- A.
Billing messages
- B.
Statement slogans
- C.
Dun messages
- D.
Payment prompters
Correct Answer
C. Dun messagesExplanation
Dun messages are included on statements to promote payment. These messages are typically used to remind customers about their outstanding balance and urge them to make a payment. They can be seen as a form of gentle persuasion or a reminder to encourage prompt payment.Rate this question:
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- 38.
What is the type of billing system in which practice management software is used
- A.
Electronic billing
- B.
Manual milling
- C.
Computer billing
- D.
Insurance balance billing
Correct Answer
C. Computer billingExplanation
The correct answer is computer billing. This type of billing system involves the use of practice management software to automate and streamline the billing process. It allows healthcare providers to generate and submit electronic claims, track payments, and manage patient billing information efficiently. This eliminates the need for manual billing methods and increases accuracy and efficiency in the billing process.Rate this question:
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- 39.
Employment of a billing service is called
- A.
Statement of service
- B.
Centralized billing
- C.
Outsourcing
- D.
Cycle billing
Correct Answer
C. OutsourcingExplanation
Outsourcing refers to the practice of hiring an external company or service to handle specific tasks or functions that were previously performed in-house. In the context of the given question, the employment of a billing service involves outsourcing the billing process to a third-party service provider. This allows the organization to delegate the responsibility of billing to a specialized service, which can help streamline operations, reduce costs, and improve efficiency.Rate this question:
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- 40.
The first statement should be
- A.
Presented at the time of service
- B.
Mailed right after the date of service
- C.
Mailed 2 weeks after the date of service
- D.
Mailed 30 days after the date of service
Correct Answer
A. Presented at the time of serviceExplanation
The correct answer is "presented at the time of service". This means that the first statement should be given or shown to the relevant party at the moment the service is being provided. It suggests that the statement is not meant to be sent or mailed after the service has been completed, but rather should be presented in person during the service itself.Rate this question:
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- 41.
What is a card called that permits bank customers to make cashless purchases from funds on deposit without incurring revolving finance charges for credit
- A.
Private-label card
- B.
Credit card
- C.
Debit card
- D.
Verifone card
Correct Answer
C. Debit cardExplanation
A debit card is a type of card that allows bank customers to make purchases using the funds they have deposited in their bank account, without incurring any revolving finance charges for credit. Unlike a credit card, which allows users to borrow money and pay it back later, a debit card deducts the purchase amount directly from the user's bank account. This means that the user is using their own money, rather than borrowing from the bank, and therefore does not have to pay any interest or finance charges.Rate this question:
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- 42.
How many installments (excluding a down payment) must a payment plan have to require full written disclosure
- A.
Three or more
- B.
Four or more
- C.
Five or more
- D.
Six or more
Correct Answer
B. Four or moreExplanation
A payment plan must have four or more installments (excluding a down payment) in order to require full written disclosure. This means that if a payment plan has three or fewer installments, it does not need to provide full written disclosure. However, if the payment plan has four or more installments, it is required to provide full written disclosure to ensure transparency and protect the consumer.Rate this question:
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- 43.
What is the name of the federal act that prohibits discrimination in all areas of granting credit
- A.
Equal Credit Opportunity Act
- B.
Fair Credit Reporting Act
- C.
Fair Credit Billing Act
- D.
Truth in Lending Act
Correct Answer
A. Equal Credit Opportunity ActExplanation
The correct answer is the Equal Credit Opportunity Act. This federal act prohibits discrimination in all areas of granting credit, ensuring that all individuals have equal access to credit regardless of their race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. This act promotes fairness and equal opportunities in the credit industry.Rate this question:
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- 44.
What is the name of the act designed to address the collection practices of third-party debt collectors
- A.
Equal Credit Opportunity Act
- B.
Fair Credit Billing Act
- C.
Truth in Lending Act
- D.
Fair Debt Collection Practices Act
Correct Answer
D. Fair Debt Collection Practices ActExplanation
The Fair Debt Collection Practices Act is the correct answer because it is the act specifically designed to regulate and address the collection practices of third-party debt collectors. This act establishes guidelines and restrictions on how debt collectors can communicate with debtors, what information they can disclose, and how they can pursue debt collection. It aims to protect consumers from abusive, deceptive, and unfair practices in debt collection. The other options listed are acts that address different aspects of consumer credit and protection, but they do not specifically target third-party debt collectors.Rate this question:
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- 45.
All collection calls should be placed
- A.
After 9 AM and before 9 PM
- B.
After 8 AM and before 9 PM
- C.
After 8 AM and before 8 PM
- D.
After 9 AM and before 8 PM
Correct Answer
B. After 8 AM and before 9 PMExplanation
Collection calls should be made during reasonable hours, which typically range from 8 AM to 9 PM. This allows for a reasonable window of time to contact individuals without disturbing them too early in the morning or too late at night. Therefore, the correct answer is "after 8 AM and before 9 PM".Rate this question:
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- 46.
Which group of accounts would a collector target when he or she begins making telephone calls
- A.
30-60 day accounts
- B.
60-90 day accounts
- C.
90-120 day accounts
- D.
Accounts older then 120 days
Correct Answer
B. 60-90 day accountsExplanation
A collector would target 60-90 day accounts when making telephone calls because these accounts are relatively recent and have a higher likelihood of being collectible. Accounts that are too new (30-60 days) may still be within the grace period, while accounts older than 90 days may have already been handed over to a collections agency or deemed uncollectible. Therefore, focusing on 60-90 day accounts allows the collector to prioritize their efforts on accounts that are more likely to yield successful collections.Rate this question:
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- 47.
In making collection telephone calls to a group of accounts, how should the accounts be organized to determine where to begin
- A.
Organize the accounts alphabetically and start with the letter A
- B.
Organize the accounts by account number and start with number 1
- C.
Organize the accounts according to amounts owed and start with the largest amount
- D.
Determine what patient you think may be easier to collect from and start with that account
Correct Answer
C. Organize the accounts according to amounts owed and start with the largest amountExplanation
The best approach to determine where to begin making collection telephone calls to a group of accounts is to organize the accounts according to amounts owed and start with the largest amount. This ensures that the accounts with the highest outstanding balances are prioritized, as they are likely to have a higher urgency for collection. This method maximizes the potential for successful collections and helps to efficiently allocate resources.Rate this question:
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- 48.
A plan in which employees can choose their own working hours from within a broad range of hours approved by management is called
- A.
Flex time
- B.
Floating time
- C.
Job share
- D.
Salary
Correct Answer
A. Flex timeExplanation
Flex time refers to a work arrangement where employees have the flexibility to choose their own working hours within a range of hours approved by management. This allows employees to have a better work-life balance and accommodate personal commitments. It also promotes productivity and employee satisfaction as they can work during their most productive hours. This arrangement is beneficial for both employees and employers as it fosters a more flexible and accommodating work environment.Rate this question:
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- 49.
When writing a collection letter
- A.
Do not try and be friendly; just get to the point
- B.
Use a friendly tone and ask why payment has not been made
- C.
Do not suggest that the patient has overlooked a previous statement
- D.
Do not imply that the patient has good intentions to pay
Correct Answer
B. Use a friendly tone and ask why payment has not been madeExplanation
When writing a collection letter, it is recommended to use a friendly tone and ask why payment has not been made. This approach helps to maintain a positive relationship with the patient while addressing the issue of non-payment. By using a friendly tone, the letter conveys concern and understanding, which may prompt the patient to provide an explanation for the delay in payment. This approach is more likely to result in a productive and respectful conversation about the outstanding payment, rather than making assumptions or accusations about the patient's intentions or oversight.Rate this question:
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- 50.
"Netback" is a term used to describe
- A.
Money collected on a bad check
- B.
A fabricated story told by a patient with a delinquent account
- C.
A collection agency's performance
- D.
Money lost due to a "skip"
Correct Answer
C. A collection agency's performanceExplanation
The term "netback" refers to a collection agency's performance. It is a measure of the agency's effectiveness in collecting money owed by delinquent accounts. A high netback indicates that the agency has successfully recovered a significant portion of the outstanding debts, while a low netback suggests that the agency has not been successful in collecting the money owed. This term is commonly used in the financial industry to assess the performance and efficiency of collection agencies.Rate this question:
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