Which of the Following Terms Is Applied When More Than

question 25

Multiple Choice

Which of the following terms is applied when more than one policy covers an individual?

• A)Coordination of benefits
• B)Co-insurance  
• C)Co-pay
• D)Deductible  
• E)Birthday rule

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Definitions:

Compounded Semiannually

Interest calculation method where interest is added to the principal sum of a deposit or loan twice a year, resulting in interest earning interest.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, leading to an increase in the amount of interest earned in subsequent years.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Annuity

A fiscal tool that disburses a set sequence of payments to a person, frequently serving as a financial income for retirees.