<u>The maximum amount of out-of-pocket expenses is $700.
</u>
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.
<u>Thus, the maximum amount of out-of-pocket expenses is $700.
</u>
Learn more:
1. Learn more about health care insurance
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2. Learn more about the insurance rules
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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.
