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The allowed amount is the amount that the insurer will pay for particular service. In the context of health insurance, for example, it is the amount that the insurer will pay for each covered procedure.
The allowed amount is usually the amount the insurance provider deems the services received to be worth. This amount can also be set by provider contracts with the insurer. These are contracts where, for instance, an insurance company agrees to pay 80% of the standard rate of the provider. In most managed care arrangements, the provider agrees to accept that amount in full payment and not to bill the insured for the balance.
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What does eighty twenty coinsurance mean?
Eighty twenty coinsurance is usually expressed 80/20 by insurance companies. The first number (80) represents the percentage of payment an insurance company will pay for a service and the second number (20) is the percentage the person receiving the service is required to pay. Other popular coinsurance amounts are 70/30, 60/40, 50/50. It is important to note a couple of factors in determining when an insurance company will pay coinsurance. First, an insurance company will only pay 80% on what the insurance considers the "allowed" amount of a fee. Generally insurance companies have fee schedules which designate the maximum amount they will pay on any particular service. This allowed amount could be more or less than the fee that is charged for the service (usually the allowed amount is lower than the fee). Second, an insurance company will only pay 80% for services rendered after the insured has satisified their deductible. Therefore, if your insurance policy has a deductible of $500, the insured must pay out $500 towards their claims then insurance companies will consider paying 80% coinsurance on the remaining balance of unpaid services. Coinsurance does not apply to deductible amounts. Third, the service that is rendered must be a covered service under the insurance policy. If the service is not a covered service most insurance policies will not pay for the service, and usually it does not apply towards the deductible either. Lastly, if the provider of the service does not have a contract with your insurance company, the insured will most likely owe the difference between the allowed amount of the insurance company and the billed amount from the provider. Coinsurance does not apply to the portion of the fee that exceeds the insurance companies allowed amount. Billing the insured for this difference is referred to as balance billing.
How can a person take a car away from someone who doesn't have auto insurance?
I assume you mean a repossession of a vehicle if you let your insurance cancel. When you purchase a vehicle and finance the cost of the vehicle you sign a legally binding contract. One of the terms in the contract is always that you must carry physical damage auto insurance payable to the finance company if the vehicle is a total loss or damaged. If you fail to keep this insurance you have broken the contract and the vehicle is subject to repossession and you may be sued for additional damages if the value of the vehicle is less than the amount owed to the finance company.
What does 8020 mean?
If you are referring to insurance than 80/20 represents the amount that you pay (20%) and the amount that your insurance company pays (80%). It can also mean that 80% of an outcome comes from 20% of a population.
What does it mean to rescind a cancellation notice?
The cancellation notice ended the Insurance Policy. Stated another way, that means that the (Insurance) contract is no longer in force. To Rescind a Cancellation means that the cancellation has been taken back or voided by the Insurance Company and the Insurance Policy (Contract) is now back in force.
What does arbitration eligible mean referring to baseball?
If the player disagress with the amount of his contract he can have a third party decide what is the right amount. It is either a clause in his contract or he has been in the league at least 5 years.
What the meaning of inswance?
Do you mean insurance? (A provision, plan, or contract which comes into effect upon the happening of an unwelcome event.)
What does cross-liability interest clauses in insurance contract mean?
This is when two parties in a contract cannot sue each other over the same event. They indemnify each other.
What does cross liability interest clauses in insurance contract mean?
This is when two parties in a contract cannot sue each other over the same event. They indemnify each other.
What does compulsory insurance mean?
Compulsory insurance usually refers to the least amount of cover for a product you can buy from insurance companies whilst still being legal in the case of car insurance.
What does it mean to debit policies in the insurance industry?
to deduct money from the payable amount of the policy
What is the maximum amount of charters allowed in a twitter message?
Assuming you mean characters, 140
What does net of commission mean?
"Net of commission" basis is where the quoted premium is reduced by an amount proposed to be the insurance agent's (or insurance broker's) commission.
