Question

How much will Sherlock have to pay each year before his co-insurance becomes active?

A) $100

B) $200

C) $500

D) $1,000

Answer 1

Sherlock will have to pay the full premium amount each year before his co-insurance becomes active.

Step-by-step explanation:

The question is asking how much Sherlock will have to pay each year before his co-insurance becomes active. Co-insurance is a term commonly used in health insurance. It refers to the portion of medical costs that an individual is required to pay after the deductible has been met. In this case, the deductible is not mentioned, but we are given that each of the 100 drivers pays a $1,860 premium each year, which is used to cover the costs of accidents. Therefore, Sherlock will have to pay the full premium amount of $1,860 each year before his co-insurance becomes active.

Answer: D) $1,000