Question

N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision is known as _______.

Answer 1

The provision requiring 'N' to pay a portion of her medical expenses under her Major Medical policy is known as coinsurance, which is a shared cost between the insurer and the insured.

Step-by-step explanation:

The provision in which 'N' has a Major Medical policy that pays only a portion of her medical expenses, and N is responsible for paying the remaining balance, is known as coinsurance. This concept is a form of cost sharing where both the insurer and the insured pay parts of the medical costs.

A common example of coinsurance occurs when an insurance policy covers a certain percentage of the cost; for instance, it might cover 80% of the costs of a procedure, while the policyholder pays the remaining 20%.