Which of the following is true of coinsurance?
A) The policyholders do not have to pay a premium.
B) Each policyholder has to pay a certain fee while filing a claim.
C) The responsibility of paying claims is split between the insurer and the policyholder.
D) All policyholders pay the same premium irrespective of the scheme they choose.

Question

Quizplus · Accepted Answer

Coinsurance is a provision in an insurance policy where the insured shares a percentage of the cost of covered services with the insurer. This means that the responsibility of paying claims is split between the insurer and the policyholder. The policyholder is responsible for paying a percentage of the covered expenses, while the insurer pays the balance. This arrangement encourages policyholders to use healthcare services prudently since they have to pay a portion of the cost. Therefore, options A, B, and D are incorrect.

Which of the Following Is True of Coinsurance