Health and Life Insurance

Answer: B - Because the cost of health care services may oftentimes be substantial, health insurance policies may contain a type of stop-loss provision that helps in preventing medical bills from financially devastating policy holders. This feature is known as the maximum out-of-pocket provision. Once an insured has spent an amount of money that is either equal to or greater than the maximum out-of-pocket amount, any future insurance claims will be paid in full by the insurance company. This is typically done without any further financial contributions from the policy holder.