Nick and Sheila Preston Are Married and Have Purchased a Comprehensive

question 34

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% co-insurance clause.The following losses occur: On January 1,2013,Sheila was treated for an infection at a cost of $200,on July 1,2013,Wally was treated for an injury suffered while waterskiing at a cost of $10,000,on December 5,2013,Nick underwent eye surgery at a cost of $1,500,and on January 5,2014,Brent was treated for a broken leg at a cost of $2,000.
How much will the insurer pay for each of these losses?

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Definitions:

Cochlear Hair Cells

Sensory cells located in the cochlea of the ear; they are essential for converting sound vibrations into electrical signals for the brain to interpret as sound.

Localize Sound

The ability of an organism to determine the origin of a sound source in its environment.

Sensory Information

Data received from the environment through the senses, such as sight, sound, smell, touch, and taste.

Place Coding

The perception of higher-pitched sounds that is a result of the location on the basilar membrane where hair cells are stimulated by sound waves of varying higher frequencies.