Respuesta :
When you take out an insurance policy your monthly premium is the amount you pay each month to keep your insurance. In this case, the $200 a month premium allows you to file a claim if something were to happen because you are paying for the insurance services. When you set up your premiums they will base your monthly service rates off of your deductible amount if you need to file a claim. The out-of-pocket for a car accident with a deductible of $700 is $700. Once the deductible is paid, the insurance will pay out for the damage.
The maximum amount of out-of-pocket expenses is $700.
Further Explanation:
Deductible in health insurance:
The deductible is the amount that the insured person has to pay for the health care services before the insurance company starts to pay. An insurance company pays for the health care bills after a specific limit. The insured person has to pay the health expenses up to a specific limit. This limit is known as the deductible.
Out-of-pocket expenses:
It is the maximum amount of expenses that the insured person has to pay for medical expenses. It includes the deductible, coinsurance, and co-payment. Premium paid on the insurance policy is not considered in the out-of-pocket expenses.
Out-of-pocket expenses in case of a car accident:
In the given case, the deductible is $700. The out-of-pocket expense includes the deductible, coinsurance, and co-payment. There is no provision of coinsurance and co-payment in the given case. Therefore, $700 will be considered as out-of-pocket expenses.
Thus, the maximum amount of out-of-pocket expenses is $700.
Learn more:
1. Learn more about health care insurance
https://brainly.com/question/7325538
2. Learn more about the insurance rules
https://brainly.com/question/6075135
3. Learn more about the insurance cover
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Answer details:
Grade: Senior School
Subject: Business Studies
Chapter: Insurance
Keywords: Your, auto, insurance, policy, has, a $200, monthly, premium, and, $700, deductible, What, is, the, maximum, amount, you, will, have, to, pay, out-of-pocket, for, a, car, accident, before, your, insurance, covers, your, costs.
