8
QuizMultiple Choice

Buying Insurance

Question 8 • OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27

Which statement best defines the term copayment?

Answer
A
It is money a consumer receives after experiencing a loss.
B
It is a payment made before a consumer can make a claim.
C
It is money paid by a consumer to share the cost of a payout.
D
It is a fee paid to an insurance company to purchase coverage.

Explanation

A copayment is a fixed amount a consumer pays for a covered service, sharing its cost with the insurer. Thus, choice C, “money paid by a consumer to share the cost of a payout,” is the best definition. A payment made before a claim is generally a deductible, while a fee to purchase coverage is a premium.

AI-written and checked against the verified answer.

Previous
Next