A Liability for Premiums Paid in Advance Can Also Arise

question 211

Multiple Choice

A liability for premiums paid in advance can also arise when insurers allow policyholders to pay several years' premiums at one time. Since the insurer has the use of policyholder funds that are not yet due, it is customary for the insurer to:

• A) Credit Assets
• B) Discount the value of such premiums and accept a lesser amount in cash
• C) Discount the value of such premiums
• D) Accept a lesser amount in cash

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Definitions:

Primary Health Care Provider

A healthcare professional, often a doctor or nurse practitioner, who provides both the first contact for a person with an undiagnosed health concern as well as continuing care for varied medical conditions.

Clarify

The process of making a statement or situation less confused and more comprehensible.

Restrain

Measures or devices used to limit the movements of a patient to prevent harm to themselves or others.

Patient's Safety

Measures and protocols in place to protect patients from medical errors, injuries, accidents, and infections during healthcare delivery.