New York Insurance Exam Practice Question
What is the purpose of a health insurance copayment?
Correct Answer: B
Rationale: A health insurance copayment serves to share the cost of covered services between the insurer and the insured. This means that when a patient receives medical care, they pay a predetermined amount, helping to manage healthcare costs while ensuring access to necessary services.
Option A is incorrect as copayments do not waive premiums; premiums are separate fees paid for maintaining the insurance policy. Option C is misleading because copayments do not increase a policy's cash value; they are simply out-of-pocket costs for services. Option D is also wrong, as copayments do not cancel a policy; they are part of the ongoing costs associated with using the insurance.
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