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

A corridor deductible is the gap amount the insured pays between the basic plan's maximum benefit and where major medical coverage kicks in.

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

A hospital indemnity policy pays a fixed daily benefit for each day the insured is hospitalized, regardless of the actual costs incurred.

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

A blanket policy covers a defined group—such as students or sports teams—under one master contract without naming individual insureds.

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

Basic hospital expense policies cover room and board, nursing services, and miscellaneous hospital charges during an inpatient stay.

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

The waiver of premium provision allows a totally disabled insured to stop paying premiums while keeping the policy in force.

Life and Health California Exam Practice Test