Life License Qualification Program (LLQP) Practice Exam

Which policy feature allows an insured to carry over health charges to the next year's deductible?

1. Deferral provision

2. Carryover provision

3. Stop Loss provision

4. Corridor provision

The correct answer is: Carryover provision

The carryover provision is a feature in health insurance policies that allows insured individuals to transfer any unpaid health charges from one calendar year to the next when it comes to meeting a deductible. This provision effectively recognizes that healthcare expenses may not always align neatly with a single policy year, allowing individuals the opportunity to take advantage of their previous year's expenses by applying them toward the next year's deductible. This can be extremely beneficial for those who experience ongoing medical treatment or unexpected health issues that lead to significant costs. This feature encourages continuity of care without penalizing the insured for timing differences between expenses and the deductible period, which is particularly important in managing healthcare costs over time. It enhances the policy's flexibility and can ease the financial burden of high medical costs that some individuals might face under normal circumstances. Other options, while they may sound relevant, do not specifically pertain to the transfer of health charges to future deductibles. The deferral provision generally refers to postponing an action or payment, the stop-loss provision involves capping the maximum amount an insured has to pay out-of-pocket, and the corridor provision typically relates to how coverage levels change when certain thresholds are crossed. Understanding these distinctions highlights why the carryover provision is the correct answer in this context.