Accident & Health FundamentalsQuestion 14 of 315
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 that pays only the deductible
c.A flat fee paid at each office visit
d.A fixed dollar amount the insured pays 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)