Health Insurance Basics

The sum of money the insured pays the insurer in exchange for the benefits provided in the policy

• The co-payment

• the premium

• the indemnity

• the capitation

Ally pays for her health insurance monthly. Her identical twin, Georgia, has eh same policy, but pays annually. Which of them probably pays more for her policy each year?

• Ally probably pays more

• Georgia probably pays more because monthly premiums usually have a service fee

• They probably pay the same

• It is not possible to determine from the information provided

Health Insurance coverage never applies until:

• the policy is delivered

• an underwriting decision is made

• the application is reviewed by underwriting

• the insured has paid for the policy

Once a health insurance policy becomes effective, unless it is canceled, it will stay in force for:

• 1 year

• 6 months

• the length of time specified in the contract

• an indefinite period

Legally, the policy is considered delivered in all of the following situations EXCEPT:

• when the policy is approved by the company (approval doesn't mean delivered)

• when the policy is mailed to the policy owner

• when the policy is turned over to the policyowner

• when the policy is turned over to someone acting on behalf of the policyowner

An insurer might require personal delivery:

• to ensure the policy goes to the right person

• for verification of the continued good health of the insured at the item of delivery

• to ensure the correct policy is delivered

• to verify information listed on the application

Restrictions applying to the replacement of Medicare supplement policies are:

• often less restrictive than regulations applying to the replacement of other policies

• generally the same as regulations applying to the replacement of other polilcies

• often more restrictive than regulations applying to the replacement of other policies

• prohibited entirely by federal law