Insurance Broker Certification Practice Exam

Health insurance primarily covers expenses related to which of the following?

1. Property damage

2. Vehicle accidents

3. Medical expenses and sickness

4. Financial investments

The correct answer is: Medical expenses and sickness

Health insurance is specifically designed to provide financial coverage for medical expenses incurred due to illness, injury, or other health-related issues. This coverage typically includes costs associated with doctor visits, hospital stays, surgeries, preventive care, prescription medications, and various therapies and treatments. The purpose of health insurance is to mitigate the financial burden of medical care, ensuring that individuals can access necessary health services without facing overwhelming costs. The other options do not fit within the scope of health insurance. Property damage pertains to homeowners or auto insurance, which protects against losses related to personal or real property. Vehicle accidents are covered under auto insurance policies, focusing on damages to vehicles and liability for injuries resulting from accidents. Financial investments relate to products designed for wealth accumulation and do not involve medical care or expenses. Thus, the emphasis of health insurance on medical expenses and sickness clearly establishes it as the correct choice.