PSI Ohio Insurance Practice Exam

Which type of insurance provides benefits for expenses incurred due to hospitalization and surgical procedures?

1. Life insurance

2. Medical expense insurance

3. Disability insurance

4. Auto insurance

The correct answer is: Medical expense insurance

Medical expense insurance is designed specifically to cover costs associated with medical care, including hospitalization and surgical procedures. It helps policyholders pay for medical bills that arise due to illness or injury. This type of insurance can cover various expenses such as hospital stays, surgeries, laboratory tests, and physician visits, ensuring that individuals have financial support when they require medical treatment. In contrast, life insurance provides financial benefits to beneficiaries after the policyholder's death, but it does not cover medical expenses incurred during life. Disability insurance offers income replacement for individuals who are unable to work due to a disability, rather than directly covering medical expenses. Auto insurance is focused on damages and liabilities associated with vehicle use, and it does not address healthcare costs for hospital stays or surgeries. Therefore, medical expense insurance is the appropriate type of insurance for the given situation.