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Unformatted text preview: the insurers promise to perform. This can include restrictions such as time constraint notifications, cancellations, grace periods, and fraud. It is important for the insurer to always have the conditions to protect themselves; the insured should also always be aware of these additional provisions. 6) Under an 80-20 coinsurance clause, Ashleys $10,000 surgery, less the $500 deductible, would cost the insurer 80% or $7600, leaving the remaining $1900 to be paid by Ashley, plus the $500 deductible payment, totaling $2400. $10,000 - $500 = $9500 * 0.8 = $7600 paid by the insurer $10,000 - $500 = $9500 * 0.2 = $1900 + $500 = $2400 paid by Ashley...
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- Spring '08