Final answer:
Insurance options that involve risk-sharing include policies with deductibles, copayments, and coinsurance, where the policyholder shares the cost with the insurance company.
Step-by-step explanation:
Insurance options that involve a risk-sharing arrangement include policies with deductibles, copayments, and coinsurance.
A deductible is the amount that the policyholder must pay out of pocket before the insurance coverage starts. For example, auto insurance may cover all losses greater than $500.
A copayment is a fixed amount that the policyholder must pay for each service, such as a doctor visit. For instance, a person might have to pay $20 for each doctor visit, and the insurance company would cover the rest.
Coinsurance is when the insurance company covers a certain percentage of the cost, and the policyholder pays the remaining percentage. For example, insurance may cover 80% of the costs of repairing a home after a fire, and the homeowner would pay the other 20%.