I believe the answer is: high deductible plan
In high deductible plan, the insurance payer is usually subjected to a lower rate of premium. This type of plan usually suitable people who had large enough saving and exposed to a higher risk of fulfilling clauses mentioned in the contract, since they basically have to pay more during the time of service before their health insurance begins to pay.
The option (B) is correct. If you cause a car accident, low-deductible plan will require you to pay the least out of pocket.
Further Explanation:
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 copayment. Premium paid on the insurance policy is not considered in the out-of-pocket expenses.
Low-deductible plan:
The low-deductible plan is the insurance plan where the insured person has to spend a low amount of out-of-pocket expenses. The contribution from the side of the insured person is minimum in low-deductible because most of the expenses are carried out by the insurance company.
The insured person has to pay least amount of deductible, coinsurance, and copayment in case of low-deductible plan. Most of the medical expenses are met by the insurance company.
Thus, the low-deductible plan will result in the least out-of-pocket expenses.
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Answer details:
Grade: Senior School
Subject: Business Studies
Chapter: Insurance
Keywords:cause, car accident, type, insurance, require, pay, least out of pocket, High deductible plan, Low deductible plan, Either A, B, neither.
