Life License Qualification Program (LLQP) Practice Exam

What expenses are covered under the hospitalization expense of a Basic Medical Expense policy?

1. Surgeon's fees

2. Physician fees

3. Hospital room and board

4. Hospital administration costs

The correct answer is: Hospital room and board

Under a Basic Medical Expense policy, the hospitalization expense typically covers the costs associated with a patient's stay in the hospital, which primarily includes hospital room and board. This encompasses the daily charges for accommodation within the hospital and meals provided during the patient’s stay. The focus of a Basic Medical Expense policy is generally on the fundamental healthcare needs associated with hospitalization, ensuring that the insured individual has access to necessary accommodations while receiving treatment. Room and board are essential components because they are directly tied to the patient's overall hospital experience, wherein the patient needs a place to rest and recuperate as part of their recovery process. In contrast, while surgeon's fees and physician fees are important components of medical expenses, they do not fall under the hospitalization expense itself; these costs are typically covered under different provisions of a health insurance policy. Hospital administration costs, although necessary for the functioning of the institution, are also not usually included as part of the hospitalization expenses for the policyholder. Thus, the primary aspect that this type of policy focuses on is indeed the room and board, which is vital for the patient's stay in the hospital.