Because a Health Plan Cannot Decline Coverage for Individuals Who

question 127

True/False

Because a health plan cannot decline coverage for individuals who are eligible for conversion of group health coverage to individual health coverage, the bulk of the health plan's underwriting for conversion policies is accomplished through health plan design.

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Definitions:

Replacement Cost

The cost to replace an asset at its current market price, often used in insurance and accounting.

Inventory

The total amount of goods or materials a company has in stock for sale or production.

LIFO Method

Last In, First Out method; an inventory valuation method where the last items added to inventory are assumed to be sold first.