The Dollar Sum of Costs That an Insured Individual Must

question 158

Multiple Choice

The dollar sum of costs that an insured individual must pay before the insurer begins to pay would be considered

• A) copayments.
• B) play-or-pay.
• C) fee for service.
• D) deductibles.

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Definitions:

Amortized Cost

Amortized cost is the initial investment amount of a financial asset or liability adjusted for principal repayments, plus or minus the cumulative amortization of any difference between the initial amount and the maturity amount, and reduced by any potential impairment or uncollectibility.

Unrealized Holding

Unrealized holding refers to the increase or decrease in the value of an investment that has not yet been sold by the holder and thus, any potential gain or loss is not yet recognized in the financial statements.

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an open and competitive market.

Reporting Period

The reporting period is the span of time covered by financial reports, and it can be monthly, quarterly, or annually.