What Is the Copay Clause in an Insurance Policy

question 16

Multiple Choice

What is the copay clause in an insurance policy?

• A) a clause in a life insurance contract that provides no coverage if the insured commits suicide before a stipulated date
• B) a clause in an insurance policy that expressly stipulates the risks that are not covered by the insurance policy
• C) a clause that prevents insurers from contesting statements made by insureds in applications after the passage of a stipulated number of years
• D) a clause that requires the insured to pay a percentage of an insured loss along with the remainder being paid by the insurer

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount of the taxable income or goods.

Average Tax Rate

The fraction of total income that is paid in taxes.

Tax Bases

The total amount of assets or income that a government can tax in order to support its spending.