Washington State Insurance Practice Exam

How is "health insurance" generally defined?

1. Insurance covering accidents only

2. Insurance that pays for property damage

3. Insurance that pays for medical and surgical expenses incurred by the insured

4. Coverage exclusively for prescription drugs

The correct answer is: Insurance that pays for medical and surgical expenses incurred by the insured

Health insurance is generally defined as coverage that pays for medical and surgical expenses incurred by the insured. This definition encompasses a broad range of services, including hospital stays, doctor visits, preventive care, surgeries, and many other healthcare-related costs. The intent of health insurance is to protect individuals from the high costs associated with medical care, making healthcare more affordable and accessible. While the other options mention specific types of coverage, they do not reflect the comprehensive nature of health insurance. For example, covering accidents only pertains to a more limited scope of insurance, typically categorized under accident insurance. Property damage coverage deals with physical assets, which is relevant to property or auto insurance but not health insurance. Exclusive coverage for prescription drugs, while an important aspect of healthcare, falls within a subset of health insurance rather than representing the overall definition. Thus, option C accurately captures the essence of health insurance by including a wide range of medical expenses.