Accident & Health FundamentalsQuestion 22 of 716
A major medical health insurance policy is best characterized by:
a.A fixed daily indemnity benefit paid regardless of the actual medical charges the insured incurs
b.Coverage that pays only for losses caused by accidental injury, never for sickness or disease
c.Broad coverage for inpatient and outpatient services with a deductible, coinsurance, and out-of-pocket maximum
d.Coverage limited to dental, vision, and hearing services, with no hospital or surgical benefits
Explanation
Major medical insurance provides broad coverage for hospital, surgical, physician, and outpatient care subject to plan design features such as a deductible, coinsurance, copayments, and an annual out-of-pocket maximum. Limited-benefit, accident-only, and indemnity policies are distinct product types.
Law Reference: Major medical coverageThis topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)