8. Health Basics

The purpose of this chapter is to introduce the student to the types of perils, losses, and benefits associated with health insurance. The chapter also examines the process of completing a health insurance application, the underwriting process, and the procedures involved in delivering a health insurance policy. Health insurance—often referred to as Accident and Health Insurance or Accident and Sickness Insurance—is purchased by the policyowner. The policyowner has control of the policy, is responsible for paying the premiums, and holds all contractual rights associated with the policy. In many cases, the policyowner and the insured may be the same individual, although they can also be different parties.