State RegulationsFL specificDifficulty 1/5
In Florida health coverage terminology, a traditional indemnity plan is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 627, Florida Statutes, and Florida's plan-type framework overseen by the Office of Insurance Regulation, the traditional indemnity plan reimburses covered expenses on a fee-for-service basis regardless of which licensed provider the insured uses; there is no required network or referral structure. The insured trades the cost advantages of managed care for unrestricted provider choice, which is the defining feature of the indemnity model.
Why the other options are wrong
- B) A single-hospital restriction is the opposite of the indemnity plan's any-licensed-provider design.
- C) The prepaid gatekeeper model describes an HMO, not an indemnity plan.
- D) Selling discounts rather than paying benefits describes a discount medical plan organization, not indemnity insurance.
Memory hook
Indemnity = any licensed provider, fee-for-service reimbursement.