New York Insurance Exam Practice Question
What is the purpose of a health insurance deductible?
Correct Answer: B
Rationale: A health insurance deductible serves primarily to limit the insurer's liability for claims. By requiring policyholders to pay a certain amount before coverage begins, insurers can manage risk and ensure that individuals share in the cost of their healthcare.
Option A is incorrect as deductibles do not waive premium payments; premiums are separate costs for maintaining coverage. Option C misinterprets the deductible’s role; while it may influence overall out-of-pocket expenses, its primary purpose is not to reduce them. Option D is also wrong, as deductibles do not affect a policy’s cash value, which is unrelated to the deductible structure.
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