Exam (elaborations)
Health Insurance – Questions & Correct Solutions
- Course
- HEALTH INSURANCE
- Institution
- HEALTH INSURANCE
Health Insurance – Questions & Correct Solutions
[Show more]
Content preview
Health Insurance – Questions & Correct SolutionsInsurance Policy Correct Ans - Is a social device, legal contract, or
policy for the transfer of financial risk
Transfer of risks Correct Ans - Through insurance individuals
transfer to insurance companies financial risks they cannot individually
afford. Insurance companies can accept for insureds risks insureds cannot
individually afford by charging a small premium to a large group of people
Pooling of risks Correct Ans - Is when a large group of people
contribute money to a fund out of which their losses can be paid. The larger
the group, the better it works financially
The premium Correct Ans - Is the money paid by the policyowner
to the insurance company in exchange for the policy. The premium must be
sufficient to pay commissions and marketing costs; pay administrative
costs, and provide a loss reserve
A lapse Correct Ans - Is when a policy is terminated due to non-
payment of premiums
The policyowner Correct Ans - Is the person or organization that
applies for the policy and pays the premiums
The insured Correct Ans - Is the person for whose covered health
expenses the insurance company pays benefits
A rider Correct Ans - Is a form added to an insurance policy. It
usually adds coverage for an extra premium charge. It can, however, be
added sometimes to limit coverage
Actuarial tables Correct Ans - Are statistical tables that are used
when calculating premium rates and morbidity loss reserve which tell
insurance companies how many claims they are likely to have each year
enabling the insurance companies to estimate what their losses will be
, Morbidity actuarial tables Correct Ans - Are actuarial tables that
tell the insurance companies how many people of each age and sex
(gender) are likely to become sick, injured or disabled each year
Test topic Correct Ans - For life insurance mortality tables are used
for health insurance morbidity tables are used
Morbidity loss reserve Correct Ans - Is the money set aside to pay
claims
The law of large numbers Correct Ans - Indicates that the larger the
group, the more accurate the morbidity actuarial tables will become and
the losses will become more predictable and manageable
Health insurance Correct Ans - It also sometimes is called Accident
and Sickness insurance and other times Accident and Health Insurance
Test topic Correct Ans - At its very beginning, the original purpose
of health insurance was to indemnify or reimburse insureds for just risk-
type expenses
Risk type expenses Correct Ans - is something that cannot be
planned and which is unintended
Test topic Correct Ans - Although many health insurance plans
provide benefits for preventive healthcare, still, today the primary purpose
of heath insurance is to indemnify for risk-type expenses
Test topic Correct Ans - The purpose of health insurance is to
protect an insured against the risk of financial loss he/she cannot
individually afford caused by illness, injury or disability.
Insurable interest Correct Ans - It is a financial interest which the
POLICYOWNER must have at the time the policy is purchased
Indemnity Correct Ans - Means to reimburse. Both the principals of
indemnity and insurable interest prohibit the insurance company from
reimbursing an insured for more than the actual amount of loss
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$15.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now