Respuesta :
Under this policy, in the event of a major mishap, Stephanie would have a total annual out-of-pocket expense of $500 which is the deductible of the insurance policy. The out of pocket expense is a cost that a person must pay in order to activate his or her insurance. Based on this policy, there is no copay or coinsurance cost, thus, Stephanie only responsible for paying the deductible.
Answer:
$1,991 will be the total annual out of pocket expenses in the event of a major mishap.
Step-by-step explanation:
The given information is :
Amount of insurance policy = $ 355,000
Annual premium = $ 0.42 per $100
Deductible amount = $ 500
Then the total annual out of pocket expense will be =
[tex](\frac{355000}{100}\times0.42 )+500[/tex]
=> [tex]1491+500[/tex] =$1991
Therefore, $1,991 will be the total annual out of pocket expenses in the event of a major mishap.
