MANAGEMENT

Detailed explanation-1: -The amount you pay for covered health care services before your insurance plan starts to pay. With a $2, 000 deductible, for example, you pay the first $2, 000 of covered services yourself.

Detailed explanation-2: -Which provision states that the insurance company must pay claims immediately? Answer D is correct. Time of Payment of Claims (a Mandatory Uniform Provision) stipulates that claims are to be paid immediately upon written proof of loss.

Detailed explanation-3: -In a policy with a guaranteed renewable provision, an insurance company can’t cancel the policy as long as the policyholder is paying the premiums, or if he/she is under a certain age that is specified in the contract.

Detailed explanation-4: -Deductible-The amount you pay before your insurance company covers any costs. For example, if your deductible is $1, 000, your plan will not pay anything (except services that are exempt from the deductible such as preventive care) until you have met your $1, 000 deductible.