In the Large Deductible Plan, what does the insured do?

In the context of a Large Deductible Plan, the insured pays a substantial portion of each claim, which is a defining characteristic of this type of coverage. This plan typically includes a high deductible limit, meaning that after the deductible is met, the insurance carrier covers the remaining costs. This arrangement allows the insured to manage and have a greater stake in the cost of claims, as they are responsible for paying out-of-pocket up to the deductible amount before the insurance begins to contribute.

The Large Deductible Plan is often beneficial for businesses that can afford to take on significant risk and are looking to save on their insurance premiums. By opting for this approach, they may experience lower insurance costs overall, because they are assuming some level of expenses directly. This also encourages the insured to be more mindful of claims, potentially reducing unnecessary costs and fostering a safer operational environment.

The other choices do not accurately describe the workings of a Large Deductible Plan. For instance, assuming all claims costs would imply that the insured has no coverage, which contradicts the essence of having an insurance plan. Sharing costs with a carrier is more aligned with co-insurance or traditional insurance setups where both parties participate in claim payments. Paying higher premiums for lower risks is a concept that