3. Two different insurance agents present you two health insurance policies as follows. AIA: It covers at most 10 outpatient visits with maximum reimbursement of 80%. For specialty, the policy would not be effective until your expenses exceed $2000. Each claim receives $800 for a maximum of 10 claims. HSBC Life: For outpatient visits, a maximum 20 visits are covered with the first 5 visits are of co-insurance rate of 80% and the next 15 visits are subject to 60% co- 2 insurance rate. For specialty, you are allow to claim at most 5 with each claim capped at $1000. Your health care services consumed are as follows: Outpatient visits of 12 with each costs $300; Specialty of 3 with each costs $2500. Which agent’s policy would you prefer? Explain.
3. Two different insurance agents present you two health insurance policies as follows. AIA: It covers at most 10 outpatient visits with maximum reimbursement of 80%. For specialty, the policy would not be effective until your expenses exceed $2000. Each claim receives $800 for a maximum of 10 claims. HSBC Life: For outpatient visits, a maximum 20 visits are covered with the first 5 visits are of co-insurance rate of 80% and the next 15 visits are subject to 60% co- 2 insurance rate. For specialty, you are allow to claim at most 5 with each claim capped at $1000. Your health care services consumed are as follows: Outpatient visits of 12 with each costs $300; Specialty of 3 with each costs $2500. Which agent’s policy would you prefer? Explain.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3. Two different insurance agents present you two health insurance policies as follows.
AIA: It covers at most 10 outpatient visits with maximum reimbursement of 80%.
For specialty, the policy would not be effective until your expenses exceed $2000.
Each claim receives $800 for a maximum of 10 claims.
HSBC Life: For outpatient visits, a maximum 20 visits are covered with the first 5
visits are of co-insurance rate of 80% and the next 15 visits are subject to 60% co-
insurance rate. For specialty, you are allow to claim at most 5 with each claim
capped at $1000.
Your health care services consumed are as follows:
Outpatient visits of 12 with each costs $300;
Specialty of 3 with each costs $2500.
Which agent's policy would
! you prefer? Explain.
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