When the Insurance Company Pays 80% of the Charge, and the Patient

question 40

Multiple Choice

When the insurance company pays 80% of the charge, and the patient pays the remaining 20%, what is the patient's portion called?

• A) Benefit
• B) Deductible
• C) Copayment
• D) Coinsurance

---

Definitions:

Cash Flow

The net amount of cash and cash equivalents being transferred into and out of a business.

Par Value

The face value of a bond, stock, or coupon as stated by the issuer, which is the minimum amount at which the security can be sold.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with dividends that are paid out before dividends to common shareholders.

No-par Common Stock

No-par common stock is issued without a par value, and its value is determined by what investors are willing to pay for it, rather than being stated in the company's charter.