The admitting nurse explains the process of signing forms to allow for

The admitting nurse explains the process of signing forms to allow for the client’s insurance company to be billed for services. If the insurance fails to pay for services, the client is responsible for payment.

This is an example of which of the following?
1. Contract law
2. Tort law
3. Statutory law
4. Administrative law

ANSWER

Correct Answer: 1
Rationale 1: Contract law involves the enforcement of agreements among private individuals or the payment of compensation for failure to fulfill the agreements. Signing a form prior to receipt of health care services makes the client responsible for cost, regardless of insurance payment.
Rationale 2: Tort law defines and enforces duties and rights among private individuals that are not based on contractual agreements.
Rationale 3: Statutory laws are laws enacted by any legislative body.
Rationale 4: Administrative laws give administrative agencies the authority to create rules and regulations to enforce statutory laws.