Which plan describes paying a per-claim amount before the insurer pays?

Which plan describes paying a per-claim amount before the insurer pays?

• A. Insured Plan
• B. Mediation
• C. IBNR
• D. Deductible Plan

Answer: (D)

The key idea is how cost sharing works: a deductible is a fixed amount you pay out of pocket before the insurer starts paying for a claim. When a plan requires paying a per-claim amount before the insurer pays, it describes a deductible applying to that claim. That’s why the option labeled as a deductible plan fits best. The other terms don’t describe this payment-before-insurance mechanism: mediation is about resolving disputes, IBNR is an accounting reserve for claims not yet reported, and an insured plan isn’t a standard term for cost sharing.

The key idea is how cost sharing works: a deductible is a fixed amount you pay out of pocket before the insurer starts paying for a claim. When a plan requires paying a per-claim amount before the insurer pays, it describes a deductible applying to that claim. That’s why the option labeled as a deductible plan fits best. The other terms don’t describe this payment-before-insurance mechanism: mediation is about resolving disputes, IBNR is an accounting reserve for claims not yet reported, and an insured plan isn’t a standard term for cost sharing.