Which of the following basic characteristics are required to make health insurance "work"?
A. Pooling of losses
B. Payment only for random losses
C. Risk transfer
D. Indemnification
E. All of the above characteristics are required
Ans: E. All of the above characteristics are required
Business
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When a policy continues because of a payor benefit clause, it means
A. The insurer pays monthly disability income to the premium payor. B. The insured is only covered to age 18, then the policy expires. C. The owner of the policy is disabled or has died. D. At age 21 or 25, the death benefit is reduced by up to 50%.
Business
Changes in accounting estimates are reported:
A. Currently and prospectively. B. Retroactively and currently. C. Retroactively, currently, and prospectively. D. By restating prior years.
Business