James has a major medical insurance policy with a lifetime limit of \$2 million. His major medical insurance policy includes a calendar-year deductible of $8,000, and a 75 - 25 percent coinsurance provision. Last week, James was hospitalized to receive a gall bladder removal surgery. The covered medical expenses for this surgery were $160,000. Suppose that this hospitalization was the first medical care that James received during the year and that all the hospital/medical expenses were eligible for coverage under the policy. i. How much of the covered hospital/medical expenses $160,000 will be paid by the James's insurer? How much will James have to pay himself? Show all your calculations and briefly explain your answers. 5 marks ii. From the perspective of insurers, explain the purpose of a 'coinsurance clause' in a medical insurance policy. 4 marks James has a major medical insurance policy with a lifetime limit of \$2 million. His major medical insurance policy includes a calendar-year deductible of $8,000, and a 75 - 25 percent coinsurance provision. Last week, James was hospitalized to receive a gall bladder removal surgery. The covered medical expenses for this surgery were $160,000. Suppose that this hospitalization was the first medical care that James received during the year and that all the hospital/medical expenses were eligible for coverage under the policy. i. How much of the covered hospital/medical expenses $160,000 will be paid by the James's insurer? How much will James have to pay himself? Show all your calculations and briefly explain your answers. 5 marks ii. From the perspective of insurers, explain the purpose of a 'coinsurance clause' in a medical insurance policy. 4 marks