Insurance and Healthcare Insurance Concepts
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Questions and Answers

What is the main purpose of insurance according to the text?

  • To provide free healthcare to the insured
  • To increase the cost of healthcare services
  • To protect the insured from loss (correct)
  • To guarantee payment for routine medical check-ups
  • How is healthcare insurance defined in the text?

  • A contract between two policyholders
  • A contract to reimburse policyholders for medical costs (correct)
  • A contract to increase the cost of preventive care
  • A contract to provide free healthcare to all citizens
  • What do insurance companies provide in exchange for premiums according to the text?

  • Guarantee for no future accidents
  • Reimbursement for any medical expenses
  • Guarantee payment for unforeseen events (correct)
  • Protection from illness
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