Ohio Insurance Laws and Regulations Practice Exam

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called:

1. Deductible

2. Copayment

3. Coinsurance

4. Premium

The correct answer is: Coinsurance

Coinsurance refers to the portion of the dental bill that is shared between the insurance company and the insured after the deductible has been met. Option A, deductible, is incorrect because it is the amount that the insured is required to pay out of pocket before the insurance coverage begins. Option B, copayment, is incorrect because it is a fixed amount that the insured is required to pay for a particular covered service. Option D, premium, is incorrect because it is the amount paid by the insured to the insurance company for coverage. Therefore, option C, coinsurance, is the most accurate answer.