Alberta General Insurance Level 1 Practice Exam

Question: 1 / 400

In health insurance, what does the term "co-insurance" refer to?

The total payment made by the insurance company

The percentage of costs that the insured must pay after the deductible is met

Co-insurance is a fundamental concept in health insurance that indicates the share of costs that the insured individual is responsible for after they've satisfied their deductible. Typically expressed as a percentage, co-insurance comes into play when an insured party receives medical care. For example, if a health insurance plan specifies a 20% co-insurance, the insured would pay 20% of the covered medical costs, while the insurance company would cover the remaining 80%. This arrangement incentivizes insured individuals to share in the costs of their healthcare, reducing overall premiums for everyone.

The first choice pertains to the total payment made by the insurance company, which is related but does not capture the essence of co-insurance specifically. The total annual cost of the premium refers to what the insured pays for their coverage, independent of the cost-sharing elements like co-insurance. Lastly, the option mentioning benefits covered without restrictions describes a broad aspect of health insurance coverage, which again does not specifically define co-insurance. Understanding these distinctions is crucial for navigating healthcare costs and insurance plans effectively.

Get further explanation with Examzify DeepDiveBeta

The total annual cost of the premium

Benefits covered without restrictions

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy