Accident & Health FundamentalsQuestion 14 of 716
Which of the following best defines coinsurance?
a.A percentage of covered charges the insured pays after the deductible is met
b.A separate policy the insured buys that pays only the deductible amount each year
c.A flat dollar fee the insured pays at the time of each office visit
d.A fixed dollar amount the insured pays each year before benefits begin
Explanation
Coinsurance is the percentage share of covered expenses the insured pays (for example, 20%) after the deductible has been satisfied; the plan pays the remaining percentage. A deductible is the dollar amount paid before benefits start, and a copay is the fixed per-service charge.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)