Sophie Bennett has personally paid a total of $6,000 in medical costs this year,which is the out-of-pocket limit listed in her insurance plan.At this point,there is a provision in her insurance contract that requires her insurance company to pay 100% of her medical costs for the remainder of the year.What provision is this likely to be?

Question

Quizplus · Accepted Answer

The stop-loss provision in an insurance contract is designed to limit the amount of money that the insured has to pay out-of-pocket. Once Sophie Bennett has reached her out-of-pocket limit of $6,000, the stop-loss provision kicks in, requiring her insurance company to cover 100% of her medical costs for the rest of the year.

Sophie Bennett Has Personally Paid a Total of $6,000 in Medical