Tennessee Insurance Practice Exam

Which statement about group health insurance is NOT true?

1. It is generally more affordable than individual insurance

2. An individual policy is given to each member

3. Coverage typically extends to dependents

4. It can include preventive care services

The correct answer is: An individual policy is given to each member

Group health insurance is designed to provide coverage to a collective group, such as employees within a company, rather than individual policies for each member. As a result, health insurance in a group setting often leverages shared costs among the enrolled members, which typically makes it more affordable than individual insurance. While each member of the group is covered under the plan, the coverage is provided as one policy that extends to all enrolled members rather than individual policies. This structure not only simplifies administration but also helps in managing costs effectively. Group health insurance often includes benefits that provide coverage for dependents, promoting family health outcomes. Many group plans also cover preventive care services to encourage members to seek necessary medical advice and treatment, which can help prevent more serious health issues in the future. Thus, saying that an individual policy is given to each member is not accurate, as it contradicts the fundamental nature of group health insurance, which operates under a single policy structure for the entire group.