1. True or False: Even if the beneficiary never needs healthcare services covered by the insurance policy, she still pays for the policy through premiums. The consumer benefits by having financial security in case of illness or injury, and the insurance company benefits by making money selling health insurance.

2. True or False: Although genetic predisposition or behavioral choices such as smoking or working a high-risk job may increase the chances that an individual will suffer from a health-related problem, in general there is a high level of uncertainty as to whether a particular person will become sick or injured and need medical assistance.

3. True or False: Whether companies are allowed to consider an applicants medical history or other personal information to help assess risk of healthcare needs in the futurea practice referred to as medical underwritingis not a complicated legal question that involves both federal and state law.

4. True or False: Managed care became the predominant healthcare financing and delivery arrangement in the United States because healthcare costs had risen to alarming levels and there were few mechanisms for containing costs under the FFS system.