Final answer:
In an insurance policy, a deductible is the amount paid out-of-pocket before the insurer pays, and a copayment is a fixed amount paid per service. Both are cost-sharing mechanisms.
Step-by-step explanation:
Two of the different types of dollar amounts specified in an insurance policy are a deductible and a copayment (often abbreviated as co-pay). A deductible is the amount that a policyholder must pay out-of-pocket before the insurance company begins to pay its share.
For example, if you have a deductible of $1,000 for your health insurance, you would need to pay the first $1,000 of covered services yourself. On the other hand, a copayment is a fixed dollar amount that a policyholder must pay for a covered service, such as $20 for a doctor's visit or $250 for an emergency room visit.
Both deductible and copayment are forms of cost-sharing, and they serve to reduce the moral hazard by having the insured bear a portion of the costs.