Question

multiple choice
which type of policy pays benefits to a policyholder covered under a hospital expense policy?
a. o blanket
b. o special risk
c. o limited
d. o reimbursement

Explanation:

To determine the correct answer, we analyze each option:

• A. Blanket: Covers multiple items/people under a single limit, not specific to hospital expense reimbursement.
• B. Special risk: Applies to unique/high - risk situations, not standard hospital expense coverage.
• C. Limited: Imposes restrictions on benefits, not the typical structure for hospital expense benefit payment.
• D. Reimbursement: Hospital Expense policies typically use a reimbursement model, where the policyholder is paid back for actual hospital costs incurred.

Answer:

D. Reimbursement