Question 46

An insurer may NOT issue an HMO contract.

An insurer is not permitted to issue an HMO (Health Maintenance Organization) contract due to regulatory requirements and specific licensing needed to operate such plans, which are often governed by state laws.

A) A disability income contract.

A disability income contract is a type of insurance policy that provides income in the event of a disability. Insurers are generally allowed to issue these contracts as they fall within typical insurance operations and do not face the same regulatory constraints as HMO contracts.

B) A dental insurance contract.

Insurers can issue dental insurance contracts, which cover dental care expenses. These contracts are widely available and do not have the same restrictions that apply to HMO contracts, making them a valid form of insurance coverage.

C) A major medical insurance contract.

A major medical insurance contract is also permissible for insurers to issue. These contracts provide comprehensive health coverage and are subject to regulatory oversight, but are not restricted in the same manner as HMO contracts.

D) An HMO contract.

An HMO contract requires specific licensing and adherence to regulations that may prevent certain insurers from issuing them. This restriction is often due to the structured network of providers and the requirement for comprehensive management of care, which not all insurers are equipped to handle.

Conclusion

The correct answer, D, highlights the specific limitations placed on insurers regarding HMO contracts due to regulatory requirements. In contrast, options A, B, and C are all types of insurance contracts that insurers can issue, reflecting the broader scope of insurance products available in the market. Thus, the restrictions surrounding HMO contracts make them the only option that insurers are not allowed to issue.