Massachusetts Health & Accident Insurance Practice Exam

What occurs during the enrollment period for group health insurance?

1. New members can apply for insurance

2. Policy benefits are reviewed and updated

3. Insurance premiums are calculated

4. Members file claims for previous benefits

The correct answer is: New members can apply for insurance

During the enrollment period for group health insurance, new members can apply for insurance coverage. This period is typically designated for individuals to join the group plan, offering them the opportunity to enroll without facing the usual underwriting processes that might occur outside of this timeframe. It allows eligible individuals who are part of an organization, such as an employer, union, or association, to gain access to health insurance, often at more favorable terms compared to individual plans. The other options, while related to the functioning of insurance policies, do not accurately describe the purpose of the enrollment period. Policy benefits being reviewed and updated, calculating insurance premiums, and filing claims pertain to different processes that happen outside of enrollment, focusing more on maintaining the existing policyholder arrangements rather than onboarding new members.