An accident and health policy that provides reimbursement benefits pays benefits to whom?

• A. Insured
• B. Service provider
• C. Policy owner
• D. Beneficiary

Answer: (A)

Reimbursement benefits repay the person who actually incurs the medical costs. The insured is the one who pays the bills for covered services, and the insurer reimburses those expenses up to the policy limits. This structure restores the insured to their financial position after a covered loss.

The policy owner and the beneficiary are not the typical recipients of these reimbursements in health and accident coverage. (Direct payments to a provider can occur in some plans, but the intent of reimbursement benefits is to refund the insured for the expenses they paid.)