Health Insurance Policies and Underwriting Processes Quiz

Health insurance functions by shifting the financial burden of medical costs from the individual to the insurance provider.

The deductible is the initial out-of-pocket amount paid by the insured before insurance coverage takes effect.

Exclusions in health insurance policies refer to medical procedures or conditions that are not covered by the insurance.

Lifetime maximum is the maximum amount an insurance company will pay for covered services over the policyholder's lifetime.

The MIB collects and shares medical information among insurance companies to assess risk.

Underwriting evaluates the potential risk associated with providing insurance coverage to individuals or groups.

Blood type is not typically considered during health insurance underwriting, unlike other relevant factors.

The premium is the fee paid by the policyholder to maintain health insurance coverage.

Coinsurance involves sharing a percentage of medical costs between the insured individual and the insurance provider.

Copayment is a predetermined fixed amount paid by the insured for each covered healthcare service.

COBRA enables individuals to maintain health insurance coverage after losing their job.

HSAs help individuals save tax-free funds specifically for qualified medical expenses.

A pre-existing condition refers to a health issue present before obtaining the insurance policy.

The CMS is responsible for overseeing health insurance regulations and programs in the United States.

The grace period allows coverage to continue for a specific duration after missing a premium payment.

HMOs play a role in organizing and coordinating healthcare services for their members.

The ACA aims to increase healthcare accessibility and regulate insurance practices in the United States.

Guaranteed issue policies are offered without medical underwriting or pre-existing condition exclusions.

Reinsurance provides insurance coverage to insurance companies, helping them manage risk.