The Lighthouse Health Plan Operates in a State That Allows

question 160

Multiple Choice

The Lighthouse health plan operates in a state that allows the health plan to use an underwriting method of determining a group's premium in which underwriters treat several small groups as one large group for risk assessment purposes. This method, which helps Lighthouse more accurately estimate a small group's probable claims costs, is known as

• A) Case stripping
• B) The low-option rating method
• C) The rate spread method
• D) Pooling

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Definitions:

Business Transactions

Activities that involve the exchange of goods, services, or money between businesses or individuals.

Organization's Profitability

A measure of the efficiency and financial success of an organization, determined by the extent to which its income exceeds its costs and expenses.

Period of Time

A specific duration marked by a beginning and an end, often used to describe or measure events or changes.