How would you calculate how much an insurance company will pay?: $1,000 deductible, $5,000 out of...

How would you calculate how much an insurance company will pay?: $1,000 deductible, $5,000 out of pocket cap, 80% coinsurance, and a person suffers a %1,500 covered loss.

Expert Solution

Total loss is 1500.

Now a deductible is 1000. So the person has to pay the 1st 1000 and the balance is 500.

Now there is a coinsurance of 80% so 20% would be paid by self and 80% by insurance

Hence total payout by insurance is 80%*500 = $400

jeff jeffy answered 2 years ago

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