BUISENESS MANAGEMENT
INSURANCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The money paid for an insurance policy
|
|
|
The portion of a claim that a person must pay before his insurance company contributes
|
|
|
The percentage share the insurance company pays when it pays out a claim
|
|
|
An additional provision purchased separate of a traditional policy to add coverage
|
Detailed explanation-1: -Which of the following best describes coinsurance? Coinsurance is the agreed upon proportions for which the insurer and the insured share payment of certain benefits or services under the policy coverage. Coinsurance proportions are usually 80% for the insurer and 20% for the insured.
Detailed explanation-2: -The percentage of costs of a covered health care service you pay (20%, for example) after you’ve paid your deductible.
Detailed explanation-3: -For example, if 80% coinsurance applies to your building, the limit of insurance must be at least 80% of the building’s value. If the policy limit you have selected does not meet the specified percentage, your claim payment will be reduced in proportion to the deficiency.
Detailed explanation-4: -This amount is a discounted cost that doctors in your plan network agree to charge. Here’s an example of how coinsurance costs work: John’s health plan has 80/20 coinsurance. This means that after John has met his deductible, his plan pays 80% of covered costs, and John pays 20%.
Detailed explanation-5: -Coinsurance is usually expressed as a percentage. Most coinsurance clauses require policyholders to insure to 80, 90, or 100% of a property’s actual value. For instance, a building valued at $1, 000, 000 replacement value with a coinsurance clause of 90% must be insured for no less than $900, 000.