Final answer:
A dental policy pays on a UCR (Usual, Customary, and Reasonable) basis when the policyholder receives dental treatment. UCR fees are based on an average of the fees charged by dentists in a specific geographical area.
Step-by-step explanation:
A dental policy pays on a UCR (Usual, Customary, and Reasonable) basis when the policyholder receives dental treatment. UCR is a method used by dental insurance companies to determine the amount they will reimburse for a particular dental procedure. The UCR fees are based on an average of the fees charged by dentists in a specific geographical area.
For example, if the UCR fee for a dental procedure is $100 and your dental policy covers 80% of the UCR fee, the insurance company will pay $80, and you will be responsible for the remaining $20. It's important to note that UCR fees may vary depending on the dentist and your insurance plan.