PSI Ohio Insurance Practice Exam

Which of the following is not typically covered by a hospital indemnity plan?

1. Private room charges in a hospital

2. Fixed daily cash benefits

3. Surgery costs

4. Room and board expenses

The correct answer is: Surgery costs

A hospital indemnity plan primarily provides fixed daily cash benefits to policyholders while they are hospitalized, allowing them to use the funds for various expenses that may arise. These benefits can be used flexibly and do not specifically cover the actual costs of medical treatments or services provided during hospitalization. Surgery costs, in contrast, are typically handled by traditional medical insurance plans rather than hospital indemnity plans. Hospital indemnity plans are designed to provide cash benefits without covering specific medical expenses directly. Thus, individuals must rely on their regular health insurance for coverage of surgical procedures and related costs. The other options, such as private room charges, room and board expenses, and fixed daily cash benefits, are more closely aligned with what a hospital indemnity plan addresses, as they assist with the non-medical financial aspects of a hospital stay.