You thought right.... "First it will ask for an administrator password, and if supplied it will install...."Now go back to the article and read the next sentence, too…
Yes. IF you have user accounts. Not everyone does. In fact of all Mac users I know, they all run as admin. For those that do have user accounts...(from CNET) “the attack does not require admin privileges to complete; however, it does ultimately result in a more obvious infection that will destabilize the system and lead to crashes.”
An “obvious infection” threat ain’t much of one.
Further....”OS X does not come with Java installed by default, and the latest versions of Java should be patched properly so anyone with new or properly updated systems should be safe from these threats...”