Question

Kurt's medical expense policy states that it will pay him a flat $50 a day for each day he is hospitalized. The policy pays benefits on which basis?

A) Reimbursement
B) Indemnity
C) Partial
D) Service

Answer 1

The policy is based on an Indemnity basis, meaning Kurt will be paid a flat $50 for each day he is hospitalized, regardless of the actual cost of his medical expenses.

Step-by-step explanation:

The policy in question, which pays Kurt a flat $50 a day for each day he is hospitalized, falls under the category of Indemnity insurance. Indemnity insurance is a type of health insurance that reimburses the policyholder for a specified amount for each day or service they receive. In this case, Kurt is being paid a flat amount per day he is hospitalized, regardless of the actual cost of his medical expenses.