Question

select all that apply

select all of the following statements that are true of supplemental insurance.

it is also known as \fill-the-gap\ insurance.
it pays as the primary insurance.
it is also known as tertiary insurance.
it covers parts of expenses such as coinsurance.

Explanation:

Define supplemental insurance

Using the Supplemental Insurance knowledge point
Supplemental insurance is designed to help pay for out-of-pocket expenses that primary health insurance plans do not cover, such as deductibles, copayments, and coinsurance. Because it covers these financial gaps, it is commonly referred to as "fill-the-gap" or "gap" insurance.

Evaluate the statements

Using the Supplemental Insurance knowledge point

• Statement 1: "It is also known as 'fill-the-gap' insurance." This is true because it covers the gaps left by primary policies.
• Statement 2: "It pays as the primary insurance." This is false. Supplemental insurance pays after the primary insurance has processed the claim.
• Statement 3: "It is also known as tertiary insurance." This is false. Tertiary insurance is a third-party payer in a coordination of benefits sequence, whereas supplemental insurance is a specific type of secondary or additional coverage.
• Statement 4: "It covers parts of expenses such as coinsurance." This is true as it is designed to cover cost-sharing responsibilities like coinsurance and deductibles.

Answer:

• It is also known as "fill-the-gap" insurance. (Correct answer)
• It pays as the primary insurance.
• It is also known as tertiary insurance.
• It covers parts of expenses such as coinsurance. (Correct answer)