Florida Life and Health Insurance License Practice Test 2026 - Free Insurance Practice Questions and Study Guide

Coinsurance is a cost-sharing agreement in health insurance where the insured is responsible for paying a percentage of the medical costs after the deductible has been met. This means that once you have satisfied your deductible, you and your insurance company will share the costs of covered services based on a predefined percentage. For example, if your coinsurance rate is 20%, you would pay 20% of the covered medical expenses, while your insurance provider would cover the remaining 80%. This method helps to distribute the financial responsibility between the insurer and the insured, promoting shared accountability for healthcare costs.

The other options describe different elements of health insurance. A fixed dollar amount cost-sharing agreement, which refers to a copayment, is not the same as coinsurance since it involves a set fee rather than a percentage of costs. A total copayment fee for hospitalization pertains to a specific type of out-of-pocket expense that may be required when receiving services, but does not reflect the broader concept of coinsurance. A premium discount for healthy individuals relates to incentives in policy pricing based on health status rather than a mechanism of cost-sharing after services are rendered.