What is the formula for calculating an insurance company payment in an indemnity plan?
A) charge ? deductible ? coinsurance
B) deductible ? coinsurance
C) deductible + coinsurance
D) charge ? deductible

Question

Quizplus · Accepted Answer

The formula for calculating an insurance company payment in an indemnity plan is "charge - deductible - coinsurance." This means the insurance company will pay the total charge for the service, minus the deductible that the insured is responsible for paying, and then also subtract any coinsurance amount, which is typically a percentage of the total charge that the insured also pays.

What Is the Formula for Calculating an Insurance Company Payment