New York Insurance Exam Practice Question
What is the purpose of a health insurance coinsurance provision?
Correct Answer: B
Rationale: A health insurance coinsurance provision is designed to share costs between the insurer and the insured, ensuring that both parties contribute to healthcare expenses. This arrangement helps keep premiums more affordable by not placing the entire financial burden on the insurer.
Option A, waiving premiums, is incorrect as coinsurance does not eliminate payments but rather outlines shared costs after the deductible is met. Option C, increasing the policy's cash value, does not relate to coinsurance, which focuses on cost-sharing rather than policy value. Option D, canceling the policy, is unrelated to coinsurance and misrepresents its purpose.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now