A homeowner’s roof is damaged during a hail storm, so the homeowner files a claim with his insurance company. The roof repair will cost $1,000. According to the insurance policy, the insurance company must pay 70% of the repair cost, and the homeowner must pay 30%. Which term describes this method of cost-sharing?
a. Copayment
b. Coinsurance
c. Deductible
d. Fee-for-service
b. Coinsurance
Coinsurance involves an insurance policyholder paying a percentage of a loss, and the insurance company paying the balance.
You might also like to view...
To maximize its profit, in the short run a perfectly competitive firm decides
A) what price to charge for its product. B) what quantity of output to produce. C) whether to exit the market. D) whether to increase the size of its plant. E) how much advertising it should undertake.
If all consumers are price-takers facing the same prices, then their budget lines will all have the same slope.
Answer the following statement true (T) or false (F)
Self-control issues exist for several areas for most people. Which of the following is not on the usual list?
a. Using credit or debit cards b. Mail order clubs or buying online c. Malls, shopping centers or other types of in-person shopping d. Antiques
Most of the total income earned in the U.S. economy is ultimately paid to
a. households in the form of wages and fringe benefits. b. landowners in the form of rent. c. landowners in the form of interest. d. landowners in the form of profit.