Question

Insurance that pays all expenses generated by the insured activity is known as:

A. total-dollar insurance coverage.
B. last-dollar insurance coverage.
C. cradle-to-grave insurance coverage.
D. first-dollar insurance coverage.

Answer 1

The answer is D. first-dollar insurance coverage.

Step-by-step explanation:

First dollar insurance coverage is a kind of insurance policy that has no deductible or copay, where the insurance company starts covering costs on the first dollar claimed, and in which the insurer assumes payment the moment an insurable event happens.

While there is no deductible, the amount that the insurer will pay out is often lower when compared with similar plans which have a deductible, or the premiums for the first dollar plan will be higher.