Life and Health California Exam Health Insurance Policies

Question 1

Under a major medical policy, what is the purpose of the 'corridor deductible'?

Accepted Answer

It is the amount paid between the basic plan maximum and the major medical coverage beginning

Answer

It replaces the base plan deductible

Answer

It eliminates the need for coinsurance

Answer

It applies only to prescription drug costs

Question 2

Which type of health insurance policy pays a fixed dollar amount per day of hospitalization regardless of actual expenses?

Accepted Answer

Hospital indemnity policy

Answer

Major medical policy

Answer

Comprehensive health policy

Answer

Blanket health policy

Question 3

A health insurance policy that covers a defined group of people under one master contract is called a:

Accepted Answer

Blanket policy

Answer

Individual policy

Answer

Franchise policy

Answer

Group policy

Question 4

Under a basic hospital expense policy, which of the following is typically covered?

Accepted Answer

Room and board and miscellaneous hospital expenses

Answer

Physician's office visits

Answer

Dental surgery

Answer

Long-term nursing home care

Question 5

Which provision in a health insurance policy requires the insurer to continue coverage for an insured who becomes totally disabled?

Accepted Answer

Waiver of premium

Answer

Reinstatement clause

Answer

Guaranteed renewability

Answer

Conversion privilege

Question 6

What does 'coinsurance' mean in the context of major medical health insurance?

Accepted Answer

The insured and insurer share covered expenses after the deductible is met

Answer

The insurer shares the premium cost with the employer

Answer

Two or more insurers share the risk equally

Answer

The insured pays 100% of expenses until the out-of-pocket maximum