QUESTION IMAGE
Question
question 2 (1 point)
a fixed amount for a covered service, paid by the insured everytime they visit the doctor
a deductible
b premium
c coinsurance
d copay
question 3 (1 point)
the purpose of insurance is to
a build relationships
b transfer risk
c manage assets
d build wealth
Question 2
Brief Explanations
To solve this, we analyze each option:
- Deductible: The amount paid out - of - pocket before insurance starts covering costs, not a per - visit fixed amount.
- Premium: The regular payment to keep the insurance policy active, not related to per - visit doctor costs.
- Coinsurance: A percentage of the cost of a service that the insured pays, not a fixed amount per visit.
- Copay: By definition, it is a fixed amount that the insured pays for a covered service (like a doctor's visit) each time the service is used.
Brief Explanations
We evaluate each option based on the purpose of insurance:
- Build relationships: Insurance is not primarily about building relationships; it's about risk management.
- Transfer risk: The core purpose of insurance is to transfer the financial risk of an event (like an accident, illness) from the individual or entity to the insurance company.
- Manage assets: Insurance is not mainly for asset management; its focus is on risk.
- Build wealth: Insurance is not a wealth - building tool in the primary sense; its main role is risk transfer.
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d. copay