Question 67

Deductibles in a major medical expense policy do not apply to each medical expense.

Deductibles in a major medical expense policy may apply to various categories such as each calendar year, each covered person, or a covered family, but they do not apply individually to each medical expense.

A) each calendar year

This option is correct, as deductibles can be structured to reset annually, meaning a new deductible amount must be met at the beginning of each calendar year before benefits are paid.

B) each covered person

This option is also correct. Deductibles can apply to each individual covered under a policy, requiring them to meet their own deductible amount before the insurance coverage begins for that person.

C) a covered family

This option is correct as well. A family deductible may be established, where a certain amount must be paid by the family collectively before the insurance company starts to pay for covered expenses.

D) each medical expense

This option is incorrect. Deductibles do not typically apply to every single medical expense; rather, they are usually applied on a yearly basis or per covered person, not per individual expense.

Conclusion

The correct answer is D, as deductibles are not typically applied to each medical expense in a major medical expense policy. Options A, B, and C illustrate how deductibles can be structured according to timeframes or the number of covered persons, demonstrating the flexibility in deductible application within insurance policies.