Final answer:
The term for a policy detailing non-coverage for pre-existing conditions is a pre-existing conditions waiver. Such terms, along with deductibles, premiums, and the workings of a health maintenance organization (HMO), are important in understanding health insurance policies. The correct option is D.
Step-by-step explanation:
The policy describing a period of non-coverage for conditions diagnosed prior to the issuance of an insurance benefit plan is called a pre-existing conditions waiver. This term is part of the health insurance lexicon and refers to an agreement by the insurance provider not to cover certain medical conditions that the policyholder was diagnosed with before the start of the policy. By understanding terms like deductible, premium, and health maintenance organization (HMO), one can navigate the complexities of health insurance more effectively.
A deductible is the amount that policyholders must pay out-of-pocket before their insurance coverage begins to pay. Premiums are regular payments made to the insurance company. An HMO is a type of health plan where services are provided for a fixed amount per person enrolled, regardless of the number of services rendered.
Understanding the intricate parts of an insurance policy is crucial, including concepts like deductibles, copayments, and coinsurance, which are designed to reduce moral hazard by requiring that insured parties share some of the financial risks. They ensure that policyholders remain somewhat financially responsible, mitigating the risk of neglecting precautions against potential insured events.