AHM-520

AHM-520 practice questions, page 9 of 9, with answer review and explanations.

Question 41

A financial analyst wants to learn the following information about the Forest health plan for a given financial period:

  1. Forest's beginning-of-period cash balance
  2. Forest's minimum cash balance
  3. The cash needs of Forest during the period
  4. Forest's end-of-period cash balance. From Forest's cash budget, the analyst most likely can obtain information about
  5. A, B, C, and D
  6. A, B, and C only
  7. A and D only
  8. B and C only

Question 42

The following statements indicate the pricing policies of two health plans that operate in a particular market: The Accent Health Plan consistently underprices its product The Bolton Health Plan uses extremely strict underwriting practices for the small groups to which it markets its plan From the following answer choices, select the response that correctly indicates the most likely market effects of the pricing policies used by Accent and Bolton.

  1. Accent = unprofitable business - Bolton = high acquisition rate
  2. Accent = unprofitable business - Bolton = low acquisition rate
  3. Accent = high profits - Bolton = high acquisition rate
  4. Accent = high profits - Bolton = low acquisition rate