CPB (Certified Professional Biller) Certification Practice Exam

What establishes a precedent based on a court decision in legal terms?

1. Category I Codes

2. Catchment Area

3. Case Law

4. Catastrophic Cap Benefit

The correct answer is: Case Law

The correct answer is case law, which refers to the body of law established by the decisions made in previous court cases. This form of law is critical in legal systems that follow the common law tradition, as it derives its authority from the rulings of judges. When a court reaches a decision on a legal issue, that decision can set a precedent, guiding how similar cases are handled in the future. This is pivotal for maintaining consistency and predictability in the application of the law, ensuring that similar situations are treated in a similar manner. Case law evolves over time as new decisions are made, which can affirm, modify, or overturn previous rulings, shaping the legal landscape as societal norms and interpretations of the law develop. The other choices, while relevant in their contexts, do not pertain to establishing legal precedent. Category I Codes relate to medical billing and coding, Catchment Area pertains to the geographical area served by a healthcare facility, and Catastrophic Cap Benefit refers to insurance coverage regarding maximum out-of-pocket expenses. These terms do not involve the application of judicial rulings or the establishment of legal precedents.