Question

Rick was charged $200 while applying for an insurance claim for his damaged car. This is an example of ________.

A, a dividend

B, a subsidy

C, a copayment

D, a brokerage

Answer 1

Is an example of copayment,

copayment or copay is a fixed amount for a covered service, paid by a patient to the provider of service before receiving the service. it may be defined in an insurance policy and paid by an insured person each time a medical service is accessed. It is technically a form of coinsurance, but is defined differently in health insurance where a coinsurance is a percentage payment after the deductible up to a certain limit. It must be paid before any policy benefit is payable by an insurance companyn. Isurance companies use copayments to share health care costs to prevent moral hazard