Nick Has a Comprehensive Health Care Policy with a $250

question 102

Multiple Choice

Nick has a comprehensive health care policy with a $250 per calendar year deductible and 80%-20% with a maximum $1,000 copayment cap per calendar year.In January,Nick had a $600 claim which the insurance company paid $280.Nick experiences another unrelated claim in October resulting in total bills of $5,000.How much will Nick have to pay for the second claim?

• A) $5,000
• B) $3,930.
• C) $1,800
• D) $ 930.
• E) none of the above.

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Definitions:

Payment

The transfer of money or goods from one party to another as a fulfillment of an obligation or settlement of a debt.

Ownership

The right to possess, use, and control a property or item, encompassing both tangible and intangible assets.

Promissory Estoppel

A legal principle preventing a party from going back on a promise, which another party relied upon, even if there was no formal contract.

Consideration

In contract law, it is something of value exchanged by the parties involved in a contract, making the agreement legally binding.