What is the amount of money you must pay before the insurance company covers any costs except liability called?
Asked by: Zoey Fahey | Last update: January 13, 2026Score: 4.8/5 (35 votes)
What is the amount of money you pay before your insurance provides coverage called?
Deductible. The amount you pay for covered health care services before your insurance plan starts to pay. With a $2,000 deductible, for example, you pay the first $2,000 of covered services yourself.
What is the amount you pay before the insurance company pays?
Deductible – An amount you could owe during a coverage period (usually one year) for covered health care services before your plan begins to pay. An overall deductible applies to all or almost all covered items and services.
What is the amount you pay for insurance called?
premiums. The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance.
What is the amount of money paid before insurance?
Simply put, a deductible is the amount of money that the insured person must pay before their insurance policy starts paying for covered expenses.
Liability Auto Insurance 101
What is the money you pay before insurance called?
Deductible - The amount you pay before your insurance company covers any costs. For example, if your deductible is $1,000, your plan will not pay anything (except services that are exempt from the deductible such as preventive care) until you have met your $1,000 deductible.
What is the amount of money that must be paid before an insurance company steps in has an inverse relationship with the premium?
Most insurance policies require policyholders to pay a part of each claim. The deductible is the amount that an insured person will pay before the insurance company pays. Generally speaking, the higher the amount of the deductible, the lower the premium for a specific amount of insurance.
What is the amount of money paid for an insurance policy called?
A policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees.
What is the insurance payable amount?
Insurance payable is debt that is related to insurance expense. It shows the amount of the company's unpaid premiums. The unpaid expenses must be settled as quickly as possible.
What is the fee called that you pay before insurance will pay for anything?
Deductible: This is the amount you must pay each year before your insurance begins to pay. Some policies have separate deductibles for prescription drugs and hospital care. Some policies have no deductible.
What you pay before an insurance company pays a claim?
What is my deductible? (The deductible is the portion of the loss you pay before your insurance company begins to pay.)
What is the $75 payment Nelson must make each month?
Explanation: The 75 payment Nelson must make each month is called the premium. Premium is the amount of money paid to an insurance company for coverage. In this case, Nelson purchased car insurance and is required to pay $75 per month as a premium.
What happens if your house is a total loss?
Most homes are insured to cover the cost of replacing the structure and contents if there is a total loss. This is called “replacement cost coverage” and it's a great way to insure your home and belongings.
Is US health care private or public?
In the United States, healthcare is largely provided by private sector healthcare facilities, and paid for by a combination of public programs, private insurance, and out-of-pocket payments.
Have an EOB but no bill?
If you have insurance
An EOB is not a bill. An EOB is a summary of the care that you received and shows the amount your insurer is billed, how much your insurance will pay for that care, and the amount that you will owe.
What is EOB short for?
An explanation of benefits (EOB) shows you the total charges for your visit. An explanation of benefits isn't a bill. It helps you understand how much your health plan covers, and what you'll pay when you get a bill from your provider.
What is the amount you pay for an insurance policy?
Premium. A premium is the amount you pay to the insurance company to buy your auto policy. The premium covers the term or length of the policy. The term can vary from one month to one year.
What is the amount payable?
Amount Payable means the total of all sums, consisting of principal amounts, costs, interest, and expenses, that the [customer] owes at a specific time.
What is the payment of insurance policy?
An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid on policies that cover a variety of personal and commercial risks. If the policyowner fails to pay the premium, the insurance company may cancel the policy.
What is a coverage limit?
Your policy's coverage limits are the maximum amount your insurer may pay out for covered claims. If you file a claim with your insurer or have a claim filed against your insurance, and the costs exceed your coverage limit, then you may be responsible for any remaining expenses that aren't covered by your insurance.
What is the amount of money paid to keep an insurance policy?
Premium. The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance. If you have a Marketplace health plan, you may be able to lower your costs with a premium tax credit.
What are subrogation rights?
“Subrogation” refers to the act of one person or party standing in the place of another person or party. It is a legal right held by most insurance carriers to pursue a third party that caused an insurance loss in order to recover the amount the insurance carrier paid the insured to cover the loss.
How much you must pay before the insurance company will pay anything?
Deductible: The amount you need to spend for covered health services before your insurance pays anything. Some plans will automatically cover preventive services, like your regular primary care physical and routine exams or screenings.
What is a good loss ratio for an insurance company?
Each insurance company formulates its own target loss ratio, which depends on the expense ratio. For example, a company with a very low expense ratio can afford a higher target loss ratio. In general, an acceptable loss ratio would be in the range of 40%-60%.
What is the solvency ratio in insurance?
Solvency Ratio is a measure of capital adequacy. It is expressed as a ratio of Available Solvency Margin to Required Solvency Margin. The excess of assets6 over liabilities7 and other liabilities of policyholders' funds and shareholders' funds maintained by the insurer is referred to as Available Solvency Margin (ASM).