Fred and Janet and their two daughters, Kelly and Karen, are insured under an individual major medical policy that covers the entire family. The policy has a calendar-year deductible of $500 that applies to each covered person, an 80-20 percent coinsurance provi- sion, and a common accident provision.

a. Janet had gallbladder surgery and incurred cov- ered medical expenses of $15,500. How much will Janet receive from her insurer?

b. Fred, Kelly, and Karen were injured in the same bobsledding accident. Covered medical expenses are $2500 for George, $900 for Kelly, and $600 for Karen. How much of the loss will be paid by the insurer? Show your calculations.