9. If your medical insurance policy has a $200 deductible and a 10 percent co-payment, how much will you pay on a medical bill of $1,000? (9 10. Co-insurance reduces adverse selection. True or false, explain (:
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- 9. Define out of pocket maximum. a. A flat-rate fee you must pay when receiving any kind of health care service. b. The maximum amount of money your insurance will cover of a certain health care service. c. The maximum amount you will have to pay out of pocket in one year for the benefits your insurance covers. d. The maximum amount of money the insured party will pay toward prescription medications.A consumer’s demand for a medical service is Q=100−PP where PP is the out-of-pocket price she actually faces. She is considering four different insurance options: uninsurance, full insurance, a 50% coinsurance plan, and a copayment plan with a $25 copay. a. Assume this service has a list price of PL =$70. Calculate Q under each insurance plan.b. Calculate the amount of social loss under each insurance plan.c. Derive a general expression for social loss as a function of x and PL, where x is the copay amount under a copayment plan. For simplicity’s sake, assume x<PL.d. Derive a general expression for social loss as a function of y and PL, where y is the coinsurance rate.Suppose you are risk averse with expected medical expenses of $900/per year. If a medical insurance company presented you with a policy of $1000/per year, would you buy it? Choose True for 'yes' or False for 'no'. True False
- Suppose we regress individuals' health insurance coverage status on yearly earnings (unit: $1,000), we get P = 0.10 + 0.009 • X, where Y is a dummy equal to 1 if the person is covered by health insurance and 0 otherwise. X is yearly earning. Assume that the average health insurance coverage rate among the studied sample is 0.2. a. What is the percentage point increase in health insurance coverage rate if yearly earning increases by $2,000? b. what is the percentage increase (relative to sample mean) in health insurance coverage %3D rate if yearly earning increases by $2,000?enfna - a,. 8. Using examples from the Kenyan economy. differentiate the profit sharing payment system from the bonus payment system ( . 9. If your medical insurance policy has a $200 deductible and a 10 percent co-payment, how much will you pay on a medical bill of $1,000? (" 10 Co-insurenn lucon dvonne selegtion TrucPurchasing auto insurance with a $500 deductible is an example of Group of answer choice risk transfer to an insurance company. risk reduction of $500. risk assumption of $500.
- Which of the following is the correct calculation of insurance premium? a. (Premium/1,000) x table rate b. (Face value/1,000) x table rate c. (1000/Face value) x table rate d. (Table rate/1,000) x Face value8 Suppose a health care organization buys supplies from a vendor but has not yet paid for the supplies. The vendor will give a 5% discount to the health care organization if it pays the invoice within 20 days as an incentive to pay quickly. What is the liability that the health care organization should record on its balance sheet: the full cost of the invoice or the discounted amount?An insurance agent says they can cut your car insurance bill in half by changing your coverage from 100/300/50 to 50/120/25. Is this a good idea? Why or Why not?
- Calculate the life insurance gross premium for an insurance company, XYZ Life, under the following assumptions. Please round your answer to the nearest dollar. 1-year term insurance for a 35-year-old female • The death benefit is $10,00O • The probability of death within one year given a female is 35 years old (q30) is 0.015 The interest rate is 1.5% • All deaths occur uniformly, hence for simplicity, price the product assuming all deaths happen at the middle of the year • XYZ Life is looking for a 25% loading based on the pure premium (i.e. PV of expected loss) (Hint: When loading Ap, expressed as a percentage, is based on pure premium, Gross premium = Pure premium × [1 + Ap]) Choose the correct answer from below. $166 $171 $149 $155 O $1867. A net premium of $41 payable for life will provide (x) with either $5,000 n-year term insurance followed by $1,000 whole life insurance after age x + n, or $3,000 n-year term insurance followed by $2,000 whole life insurance after age x + n. What is 1000 · Px ? A) 17.37 B) 17.47 C) 17.57 D) 17.67 E) 17.77How would the quick ratio be affected by a prepayment of $30,000 for fire and liability insurance? a. The quick ratio would decrease. b. The quick ratio would increase. c. The quick ratio would not change. d. The effect cannot be determined from the information given.