Fundementals of Insurance

Question 1

What are the 3 characteristics of private insurance?

Answer 1

• known as commercial insurance
• a benefit of employment (most commonly)
• contain group health plans (Labor unions)

Question 2

What are the 3 characteristics of self insurance?

Answer 2

• common in labor unions.
• does not participate in a risk pool and has own funds for covered events/services
• exempt from state regulation (not from federal ERISA)

Question 3

What are the characteristics of Direct Contracting

Answer 3

• Buyer sponsored organizations
• Provider sponsored organizations
• Like a co-op

Question 4

What are the 3 classifications of insurance?

Answer 4

⭐️Sponsorship
⭐️Method of cost sharing
⭐️?

Question 5

What are the characteristics of the Methods of Cost Sharing?

Answer 5

• Indemnity Insurance (beneficiary pays and is reimbursed)
• Service Benifit Plans (providers paid directly from insurance)
• Long Term Care (commercial, partnership, and combo life and annuity insurance)

Question 6

What are the 3 types of insurance classifications by sponsorship?

Answer 6

⭐️Private Insurance
⭐️Self Insurance
⭐️Direct Contracting