Two reasoned thoughtful responses to passage.

CH10. In the basic parts of an insurance contract, a declaration page is needed to declare the insured party, what risks or property is being covered, any policy limits that might exist and the period of which the policy covers. Next comes the insuring agreement. This is a summary of all the major promises that the insurer has to the insured. This typically will state what specifically is covered under the policy and what will trigger the policy. After that comes the exclusions of the policy. There are three major types of exclusions, perils, excluded losses, and excluded property. The last part is the conditions page. This part explains any provisions of the policy and any limitations that it might include. These are conditions that must be met in order for the policy to be paid.

When looking at health insurance contracts, there is another part that needs to be looked at. Deductibles and coinsurance are descriptive of health due to how the contracts are setup. When paying a medical bill, your insurance will pay for a percentage of the bill minus your deductible until the policy limits have been met. The remaining portion left to the insured to pay if applicable. This is a example of a deductible in health care. Coinsurance is similar but with a twist. Coinsurance is a fixed percentage that an insured must pay toward a covered claim after the deductible has been met.

Two reasoned thoughtful responses to passage.

ch.10A. Insurance contacts contain several parts including a declarations section, page of definitions, insuring agreement, exclusions, conditions section and miscellaneous provisions. The insured must pay a certain number of dollars of loss before the insurer is required to make a payment with a straight deductible. An aggregate deductible means that all losses that occur during a specified time period, usually a policy year, are accumulated to satisfy the deductible amount. Calendar-Year deductible is a type of aggregate deductible that is found in individual and group medical expense policies.

The coinsurance clause in a property insurance contract encourages the insured to insure the property to a stated percentage of its insurable value. If the coinsurance requirement is not met at the time of the loss, the insured must share in the loss as a coinsurer. Individual and group health insurance plans typically have a coinsurance clause that requires that requires the insured to pay a certain percentage of covered medical expenses in excess of the deductible up to some specified annual limit. The purpose of coinsurance in health insurance is to reduce premiums and to prevent overutilization of policy benefits.