Alabama Insurance Adjuster Practice Exam

What does Lonnie's responsibility of paying 15% of her medical costs represent?

1. Copayment

2. Coinsurance Payment

3. Deductible

4. Out-of-Pocket Maximum

The correct answer is: Coinsurance Payment

The responsibility of paying 15% of her medical costs represents a coinsurance payment. Coinsurance is a cost-sharing mechanism where the insured pays a specific percentage of the medical costs after the deductible has been met. In this instance, Lonnie is responsible for 15% of her medical expenses, which indicates that she's sharing the cost of her healthcare within her insurance plan, while the insurance company covers the remaining 85%. This arrangement helps to encourage the insured to make informed healthcare choices, as they will be accountable for a portion of the costs. Understanding coinsurance is important for insurance adjusters, as it directly impacts the financial responsibilities of the policyholder in relation to their healthcare services.