Nick and Sheila Preston are married and have purchased a comprehensive major medical policy which covers them and their two sons,Wally and Brent.The policy has a $500 calendar-year family deductible,a $2,500 stop-loss provision,and an 80% coinsurance clause.The following losses occur: On January 1,Sheila was treated for an infection at a cost of $200; on July 1,Wally was treated for an injury suffered while waterskiing at a cost of $10,000; on December 5,Nick underwent eye surgery at a cost of $1,500; and on January 5 of the following year,Brent was treated for a broken leg at a cost of $2,000.

How much will the insurer pay for each of these losses?

Question

Nick and Sheila Preston are married and have purchased a comprehensive major medical policy which covers them and their two sons,Wally and Brent.The policy has a $500 calendar-year family deductible,a $2,500 stop-loss provision,and an 80% coinsurance clause.The following losses occur: On January 1,Sheila was treated for an infection at a cost of $200; on July 1,Wally was treated for an injury suffered while waterskiing at a cost of $10,000; on December 5,Nick underwent eye surgery at a cost of $1,500; and on January 5 of the following year,Brent was treated for a broken leg at a cost of $2,000.
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How much will the insurer pay for each of these losses?

Quizplus · Accepted Answer

The Answer of Nick and Sheila Preston are married and have purchased a comprehensive major medical policy which covers them and their two sons,Wally and Brent.The policy has a $500 calendar-year family deductible,a $2,500 stop-loss provision,and an 80% coinsurance clause.The following losses occur: On January 1,Sheila was treated for an infection at a cost of $200; on July 1,Wally was treated for an injury suffered while waterskiing at a cost of $10,000; on December 5,Nick underwent eye surgery at a cost of $1,500; and on January 5 of the following year,Brent was treated for a broken leg at a cost of $2,000.
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How much will the insurer pay for each of these losses?

Nick and Sheila Preston Are Married and Have Purchased a Comprehensive