Montana Health Insurance Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

In health insurance, what is a premium?

The amount owed per claim

The periodic payment made to maintain coverage

A premium refers to the periodic payment made to maintain coverage under a health insurance policy. This payment is usually made monthly, quarterly, or annually and represents a contractual arrangement between the insured and the insurer. By paying the premium, the insurer agrees to provide financial protection against specified health-related expenses, such as medical bills or hospital stays.

Understanding the role of the premium is crucial, as it ensures continuous coverage and access to healthcare services as outlined in the insurance policy. If the premium is not paid, the policy may lapse, leading to a loss of coverage and benefits. Thus, timely payment of premiums is essential for individuals to maintain their health insurance protection.

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The share of costs covered by the insured

The cash value of a policy

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