Intro to Health Insurance

Question 1

Health insurance is designed to cover two perils:

Answer 1

1. Accident
2. Sickness

Question 2

Pre-existing condition exclusions are still allowed for:

Answer 2

Disability policies, long-term care insurance, Medicare supplements, and limited benefit policies

Question 3

Hospital/medical expense coverage

Answer 3

Helps pay doctor and hospital bills. It includes coverage for diagnostic and treatment-related expenses such as lab tests, x-rays, and medical supplies. Many medical expense plans also cover the cost of prescription drugs

Question 4

Disability income insurance

Answer 4

Pays a stated amount of income to the insured when an accident or sickness leaves them unable to work for an extended period

Question 5

Long-term care (LTC) insurance provides coverage for medical and non-medical care for individuals with:

Answer 5

-chronic illnesses
-cognitive impairment
-difficulty performing activities of daily living (ADLs)

Question 6

Federal health insurance programs:

Answer 6

-TRICARE
-Veterans benefits
-Medicare
-Medicaid
-Social Security disability

Question 7

Limited vs comprehensive health coverage

Answer 7

Comprehensive policies offer broad coverage for health care services. Limited policies provide benefits for only a particular type of loss and there are a number of special health insurance policies that provide limited coverage

Question 8

Fairly inexpensive policies that cover specific life-threatening diseases or serious conditions

Answer 8

Specified or dread disease

Question 9

A hospital income, or hospital indemnity, plan pays:

Answer 9

A flat dollar amount as a daily benefit for each day that the insured is hospitalized as an inpatient. Payment made directly to the insured.

Question 10

Credit disability insurance

Answer 10

If the consumer (debtor) becomes disabled, the policy’s benefit is paid to the creditor (lender) to pay off the loan

Question 11

A type of group health insurance where the group members are identified as all persons engaged in a similar activity, such as employees at a company picnic

Answer 11

Blanket coverage

Question 12

Most comprehensive health insurance policies do not cover costs related to ______ loss

Answer 12

Hearing

Question 13

Limited benefit health insurance policies:

Answer 13

-accident only
-dread disease
-critical illness
-hospital indemnity
-credit disability
-blanket coverage
-prescription drugs
-vision
-hearing
-short-term medical expense plans

Question 14

Health insurance common exclusions:

Answer 14

-intentional
-war or act of war
-elective cosmetic surgery
-works compensation
-felony