Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Health InsuranceMedium
A Florida resident is reviewing their individual medical expense policy and sees a clause that states if they suffer a covered injury or illness, the insurer will pay for all reasonable and necessary medical expenses up to a very high limit, with no specific dollar amount listed per procedure. This policy structure is characteristic of which type of medical expense policy?
- AComprehensive Major Medical
- BScheduled Benefit
- CBasic Medical Expense
- DLimited Benefit
Show answer & explanationAnswer & explanation
Correct answer: A. Comprehensive Major Medical
Comprehensive Major Medical policies cover a broad range of medical expenses, often with high overall limits and a deductible, providing extensive coverage rather than specific dollar amounts per procedure.
Why the other options are wrong
- B. Scheduled Benefit policies list specific dollar amounts for each medical procedure, which is contrary to the scenario.
- C. Basic Medical Expense policies typically cover specific services with lower limits and may not cover all expenses.
- D. Limited Benefit policies only cover specific illnesses or services, not a broad range of medical expenses.
Comprehensive Major Medical
A type of medical expense insurance that provides broad coverage for most medical expenses, typically with a single deductible, coinsurance, and high overall limits.
- Covers a wide range of medical services (hospital, surgical, medical).
- High maximum benefit limits.
- Often includes a deductible and coinsurance.
- No specific dollar amounts per procedure.
Memory trick: Comprehensive major medical covers all your major needs.