Life & Health Insurance Exam Prep Questions with solved solutions

Basic Medical Expense policies - ANSWER-Provide coverage for Hospital, Surgical and Physicians Medical Expense. -Purchased as a individual or group policy. -provide first dollar coverage (no deductibles). -limited benefit periods and low coverage limits. Major Medical Expense Policy - ANSWER--A supplement (in addition) to Basic Medical or as a stand-alone policy. -individual or group policy. -Take over when the Basic Policy runs out Hospital Expenses - ANSWER--Pay for covered expenses incurred during a hospital stay. 1. Daily hospital benefit - Room and Board 2. Miscellaneous expenses - Other Medical Expenses (X-Rays, MRI, Prescriptions, Doctor Visits) Daily Hospital Benefit - ANSWER--Cost of a hospital room, up to a daily $ limit. The limit may be expressed either as a dollar amount, e.g. $500 per day, or it may be expressed as the Usual, Customary and Reasonable (UCR) and Charge Usual, Customary and Reasonable (UCR) - ANSWER-Insurance company will pay an amount for a given procedure based upon the average charge for that procedure in that specific geographic area. The coverage is subject to a maximum amount or number of days. Benefit Schedule - ANSWER--Specifically states what is covered in the plan and for how much. The coverage is subject to a maximum amount or number of days.