1. You are admitted to hospital for major brain tumor and needs medical attention. Your maximum out-of-pocket is SR10, 000. In your health insurance policy stated the following clause on coinsurance and deductible. Calendar year Deductible is equivalent to SR5, 000 and Coinsurance is 20%. The following is the charges from the treatment:

Outpatient x rays and tests is SR5, 000

Ward and facility charges is SR20, 000

Surgeons fee is SR, 10,000

Prescription drugs is SR7, 000

Therapy expenses is SR 8, 000

Calculate how much you will get coverage from your insurance company based on the above charges. Your calculation will include:

i) Deductible

ii)Coinsurance

iii)Total out of pocket

iv) Total amount the insurance company will pay to you

1. Explain the following renewal provisions that may appear in individual health

insurance policies:

1. Non-renewable for stated reason (2 marks)
2. Guaranteed renewable (2 marks)
3. Non-cancellable (2 marks)