Question

A(n) ______ of benefits of a Health Policy transfers payments to someone other than the policy owner

Answer 1

An assignment of benefits in a health policy means the insurance company pays healthcare expenses directly to the provider, potentially reducing moral hazard and ensuring direct use of funds for medical services.

Step-by-step explanation:

A assignment of benefits of a Health Policy transfers payments to someone other than the policy owner. In the context of health insurance, this typically means that the insurance company pays healthcare expenses directly to the healthcare provider on behalf of the policyholder.

This can reduce moral hazard and ensure that funds are being used directly for medical services. Insured individuals might also encounter deductibles, copayments, and coinsurance, which are all methods of sharing the cost of healthcare services between the insurance company and the policyholder to further reduce the risk of moral hazard and encourage responsible use of insurance coverage.

Answer 2

A nominee of benefits of a Health Policy transfers payments to someone other than the policy owner.

Step-by-step explanation:

In insurance terms, a nominee is an individual chosen by the policyholder to receive the benefits of the policy in the event of the policyholder's demise or incapacitation. When a policyholder designates a nominee in a Health Policy, they authorize that person to receive the benefits payable under the policy if the insured event occurs. The nominee could be a family member, spouse, or any other chosen person. This designation ensures a seamless and efficient transfer of benefits, avoiding potential delays or complications in disbursing the proceeds of the policy. Nomination in a Health Policy reflects the policyholder's intent to ensure that the financial support provided by the policy reaches the intended recipient when needed, easing the burden during challenging times.