Nick and Sheila Preston Are Married and Have Purchased a Comprehensive

question 21

Essay

Nick and Sheila Preston are married and have purchased a comprehensive major medical policy which covers them and their two sons,Wally and Brent.The policy has a $500 calendar-year family deductible,a $2,500 stop-loss provision,and an 80% coinsurance clause.The following losses occur: On January 1,Sheila was treated for an infection at a cost of $200; on July 1,Wally was treated for an injury suffered while waterskiing at a cost of $10,000; on December 5,Nick underwent eye surgery at a cost of $1,500; and on January 5 of the following year,Brent was treated for a broken leg at a cost of $2,000.
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How much will the insurer pay for each of these losses?

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Definitions:

B-lymphocytes

A type of white blood cell that plays a significant role in the humoral immunity component of the adaptive immune system.

Thymus

A small organ located in the upper chest under the sternum, where T-lymphocytes (T cells) mature and differentiate.

Blood Plasma

The liquid component of blood that carries blood cells, nutrients, hormones, and waste products, and is composed of water, proteins, and dissolved substances.

Collecting Ducts

Tubes in the kidneys that play a crucial role in the process of producing urine by collecting it from the nephrons.