Question

Most insurers issue health insurance policies for delivery in many states. Because each state regulates and mandates the requirement for policies delivered to their residents, instead of having a policy form for each state, the insurer attaches:

A) A state-specific endorsement to the policy
B) A federal compliance rider to the policy
C) A master policy that incorporates state-specific requirements
D) An interstate compact agreement to the policy

Answer 1

Insurers attach state-specific endorsements to health insurance policies to comply with varying state regulations. These endorsements help standardize multi-state policy delivery while ensuring legal compliance.

Step-by-step explanation:

When most insurers issue health insurance policies for delivery in multiple states, they must navigate a complex web of state regulations and mandates.

To efficiently adapt a policy for different states, an insurer typically attaches a state-specific endorsement to the policy.

These state-specific endorsements allow the policy to comply with the particular rules and coverage requirements of each state, ensuring that the policyholder has the legally prescribed coverage for their place of residence.

The establishment of health insurance exchanges under The Affordable Care Act has also influenced competition in the market for health insurance, providing more options for individuals and small businesses to obtain coverage.