What is the amount paid for a policyholder to maintain an insurance policy? (2024)

What is the amount paid for a policyholder to maintain an insurance policy?

An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance. Once earned, the premium is income for the insurance company.

What is the amount a policyholder pays for insurance coverage called?

Premium The amount of money an insurance company charges for insurance coverage. Premium Financing When a policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees.

What is the fee paid by a policyholder for insurance coverage called?

The maximum amount a policy will pay, either overall or under a particular coverage. Premium. The amount of money an insurance company charges for insurance coverage.

What is the amount a policyholder pays an insurance company?

The insurance premium is the actual amount the policyholder pays to the insurance company in exchange for coverage.

What is the amount paid or to be paid by the policyholder?

Premium - The payment, or one of the periodic payments, a policyowner agrees to make for an insurance policy. Depending on the terms of the policy, the premium may be paid in one payment or a series of regular payments, e.g., annually, semi-annually, quarterly or monthly.

What is the amount paid by the insured means?

An insurance premium equates to the money that is paid by any person or company/business for availing of an insurance policy. The insurance premium amount is influenced by multiple factors and varies from one payee to another.

What is an amount to be paid for an insurance policy quizlet?

The premium is what the policyowner pays to maintain insurance protection.

What is the amount paid or to be paid by the policyholder for coverage under the contract usually in periodic installments?

Premium — The payment a policyowner is required to make to an insurance company to purchase insurance coverage and to keep the policy in force.

What is an amount paid by a policyholder before the insurance company pays for damages?

Deductible - The amount of the loss that the policyholder is responsible to pay up-front before covered benefits from the insurance company are payable.

What is a policy fee on an insurance policy?

What is a Policy Fee? A policy fee is an additional fee that the insured is required to pay beyond the policy premiums. Not all insurance companies charge a policy fee, but those that do generally use the fee to cover the administrative costs associated with establishing a new policy or payment method.

What is another name for fee-for-service insurance?

Before the value-based care initiative, the fee-for-service health plan was the customary type of health care insurance. Also identified as indemnity plans, the FFS coverage is most pricey; however, a fee-for-service health plan provides complete independence and flexibility to those who can afford it.

What is it called when an insurance company pays a provider?

Applied to Deductible (ATD): The amount of charges the patient must pay before the insurance company will start paying. This is usually found on the patient insurance statement. Assignment of Benefits (AOB): Insurance payments that are paid directly to the provider for services performed.

What is the name for the highest amount a policyholder pays?

Out-of-pocket maximum

This is the highest amount the policyholder pays during a year for coverage. This includes coinsurance, copayments, and deductibles, but is on top of the regular premiums. Once the out-of-pocket maximum has been reached, the health insurer will cover all expenses for the rest of the year.

What is an amount of money a policyholder must pay before the insurance company pays the remainder?

Deductible - A fixed dollar amount during the benefit period - usually a year - that an insured person pays before the insurer starts to make payments for covered medical services. Plans may have both per individual and family deductibles. Some plans may have separate deductibles for specific services.

What is the amount of insurance?

The amount of insurance is the amount of money that an insurance company is willing to provide financial coverage for, for a specific policy. For example, if your homeowner's insurance policy has a limit of $300,000, then the amount of insurance you have for this policy would be $300,000.

What is the price paid for an insurance policy called an insurance group of answer choices?

Premium. A premium is the amount you pay to the insurance company to buy your auto policy.

What is amount paid by a policyholder before the insurance company makes any payments for claims?

Deductible - The amount you pay before your insurance company covers any costs. For example, if your deductible is $1,000, your plan will not pay anything (except services that are exempt from the deductible such as preventive care) until you have met your $1,000 deductible.

How do you pay for a policy?

How is insurance paid?

An insurance premium is the amount you pay to your insurer regularly to keep a policy in force. You may be able to pay premiums monthly, quarterly, every six months or annually, depending on your insurance company and your specific policy.

What is a fee paid for a service called?

Service charges are also called service fees. They go by a number of different names depending on the industry, including booking fees (hotels), security fees (travel), maintenance fees (banking), and customer service fees.

What is the difference between fee-for-service?

In short, fee-for-service is a traditional payment model where healthcare providers are reimbursed for each service they deliver to a patient, while value-based care is a newer approach that incentivizes providers to focus on quality outcomes rather than the quantity of services rendered.

What is a service fee expense?

A service charge is added to the overall price of a service or product to cover additional expenses incurred by the merchant providing it. It could be the cost of delivery, or of packing goods, and may be either a single flat rate fee per transaction, or a percentage of the overall cost of the goods or services.

What are the most common errors when submitting claims?

What is the difference between amount allowed and billed amount?

Billed amount: what the provider billed. Allowed amount: what the insurer allows for the service (sometimes shown as an "insurer discount" - i.e., if the billed charge is $50 higher than the insurer's allowed amount, the insurer discount would be $50), Paid amount: what the insurer paid the provider.

What is the birthday rule?

The birthday rule determines primary and secondary insurance coverage when children are covered under both parents' insurance policies. The birthday rule says primary coverage comes from the plan of the parent whose birthday comes first in the year.