Final answer:
The part of a health insurance policy detailing the provided benefits and payment circumstances is the Insuring clause. This includes healthcare costs coverage and cost-sharing methods like deductibles, copayments, and coinsurance, reducing moral hazard.
Step-by-step explanation:
The part of a health insurance policy that states the kind of benefits provided and the circumstances under which they will be paid is the Insuring clause. This clause is critical as it defines the scope of coverage provided by the insurance company. It directly relates to what type of healthcare costs will be covered, such as physician services, medical tests, and outpatient visits. Additionally, it specifies the conditions such as deductibles, copayments, and coinsurance, which are all methods of cost-sharing between the insurer and the policyholder, designed to reduce moral hazard by ensuring that insured individuals share in the cost of their healthcare expenses. The insuring clause is essential for policyholders to understand their potential costs and the insurance company's contribution towards those costs.