Question 67

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

Deductibles in a major medical expense policy typically apply to specific periods or groups rather than to each individual medical expense. Therefore, they are not designed to be assessed on a per-expense basis, which is why option D is the correct choice.

A) each calendar year

This option is correct as many major medical expense policies have an annual deductible that resets at the beginning of each calendar year. This means that insured individuals must satisfy this deductible before their insurance coverage begins to pay for covered medical expenses within that year.

B) each covered person

This option is also correct because some policies may specify that each covered person on the plan has an individual deductible. This means that if multiple individuals are covered under a family plan, each one must meet their own deductible before the policy begins to cover their medical expenses.

C) a covered family

This option is correct as well, as many policies feature a family deductible. Under this arrangement, once the total deductible amount for all covered family members is met, the policy will begin to cover expenses for all family members, thus applying the deductible to the family unit rather than individual members.

D) each medical expense

This option is incorrect because deductibles are not typically applied to each individual medical expense. Instead, they are usually assessed based on time frames, covered individuals, or family units. This means that policyholders do not have to meet a separate deductible for every single medical claim.

Conclusion

The correct answer is option D, as deductibles in major medical expense policies are not applied to each medical expense separately. Instead, they are structured around periods, individuals, or families, making options A, B, and C valid forms of deductible applications. Thus, option D stands out as the exception in this context.