State RegulationsOH specificDifficulty 1/5
Under Ohio insurance law, a health insuring corporation (HIC) is best described as an organization that:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
An HIC — the entity Ohio law governs under the Ohio Revised Code Chapter 1751 framework, supervised by the Ohio Department of Insurance — merges the financing function (collecting periodic premiums) with the delivery function (providing or arranging members' medical care through an organized provider system). This dual role distinguishes HICs from traditional indemnity insurers, which only pay for care after it is received and play no part in arranging it.
Why the other options are wrong
- A) Paying a percentage of charges after care is the indemnity/reimbursement model, which lacks the delivery function that defines an HIC.
- C) HICs are comprehensive managed care organizations governed by ORC Chapter 1751, not limited catastrophic-only sellers, and the description of failing underwriting is foreign to the model.
- D) A claims administrator only processes payments for a plan sponsor; it neither finances the risk on its own account nor arranges care, so it is not an HIC.
Memory hook
HIC = Health care Income + Care: it both pays for and provides the care.