Health Insurance Policies Flashcards
6 cards from real Life and Health California Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Health Insurance Policies flashcards as text
Under a major medical policy, what is the purpose of the 'corridor deductible'?
Answer: It is the amount paid between the basic plan maximum and the major medical coverage beginning
A corridor deductible is the gap amount the insured pays between the basic plan's maximum benefit and where major medical coverage kicks in.
Which type of health insurance policy pays a fixed dollar amount per day of hospitalization regardless of actual expenses?
Answer: Hospital indemnity policy
A hospital indemnity policy pays a fixed daily benefit for each day the insured is hospitalized, regardless of the actual costs incurred.
A health insurance policy that covers a defined group of people under one master contract is called a:
Answer: Blanket policy
A blanket policy covers a defined group—such as students or sports teams—under one master contract without naming individual insureds.
Under a basic hospital expense policy, which of the following is typically covered?
Answer: Room and board and miscellaneous hospital expenses
Basic hospital expense policies cover room and board, nursing services, and miscellaneous hospital charges during an inpatient stay.
Which provision in a health insurance policy requires the insurer to continue coverage for an insured who becomes totally disabled?
Answer: Waiver of premium
The waiver of premium provision allows a totally disabled insured to stop paying premiums while keeping the policy in force.
What does 'coinsurance' mean in the context of major medical health insurance?
Answer: The insured and insurer share covered expenses after the deductible is met
Coinsurance means the insured pays a percentage (commonly 20%) and the insurer pays the remaining percentage (commonly 80%) of covered expenses after the deductible.