Quiz 13

Which of the following types of health coverage frequency uses a deductible?

Major Medical Policy?

Comprehensive Major Medical policies usually combine:

Major Medical with Basic Hospital/Surgical coverage

Basic Hospital and Surgical policy benefits are

lower than the actual expenses incurred

A catastrophic illness would be best covered by which of the following health insurance plans?

major medical

Which of the following is NOT a limited benefit plan?

life insurance policies

A Hospital/Surgical Expense policy was purchased for a family of four in March of 2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as well. What would be this family's out-of-pocket medical expenses for 2013?

$1,000

C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000?

$720

All of the following statements about Major Medical benefits are true, EXCEPT

Benefits have no maximum limit

B's policy provides coverage on an in- hospital basis only and contains limited daily room and board benefit. Which of these policies does B have?

Basic Hospital

This type of deductible provision waives the deductible for all family members after some of them have satisfied individual deductibles within the same year:

Family maximum deductible

S wants to open a tax-exempt Health Savings Account. To qualify for this type of account, Federal law dictates that S must be enrolled in a

High Deductible Health Plan

In Major Medical Expenses policies, what is the objective of Stop Loss provision?

Limits an insured's out-or-pocket medical expenses

Which of the following costs would be a Basic Hospital/Surgical policy likely cover?

Surgically removing a facial birthmark

Generally, how long is a benefit period for a Major Medical Expense Plan?

one year

Deductibles are used in health policies to lower

overuse of medical services