Question 3. 3. (TCO D) Suppose a person has a health insurance policy with a $50

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Question 3.3. (TCO D) Suppose a person has a health insurance policy with a $500 calendar year deductible, a $2,000 out-of-pocket cap, and an 80% coinsurance provision. If this person suffers a $600 covered loss, how much will the insurance company pay? (Assume no previous losses have occurred.) (Points : 4)        $80
       $100
       $480
       $600
       Some other amount Question 4.4. (TCO D) The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases? (Points : 4)        Dwelling limit of $75,000, replacement cost of dwelling $90,000, actual cash value of dwelling $85,000
       Dwelling limit of $75,000, replacement cost of dwelling $100,000, actual cash value of dwelling $90,000
       Dwelling limit of $90,000, replacement cost of dwelling $90,000, actual cash value of dwelling $90,000
       Dwelling limit of $110,000, replacement cost of dwelling $110,000, actual cash value of dwelling $90,000
       Dwelling limit of $120,000, replacement cost of dwelling $100,000, actual cash value of dwelling $90,000 Question 3.3. (TCO D) Suppose a person has a health insurance policy with a $500 calendar year deductible, a $2,000 out-of-pocket cap, and an 80% coinsurance provision. If this person suffers a $600 covered loss, how much will the insurance company pay? (Assume no previous losses have occurred.) (Points : 4)        $80
       $100
       $480
       $600
       Some other amount

Explanation / Answer

Ans: step -1:

$600 covered loss - $500 deductible = $100

The coinsurance will apply to $80 of the remaining $100 (100 x 80%)

The insurance company will pay for $80 answer A

Step-2:

Coinsurance clause = 80%

Deduction in the claim payment for covered loss = $30,000

Dwelling limit of $75,000, replacement cost for dwelling $100,000; actual cash value of dwelling, $90,000.

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