Comprehensive Medial Insurance - Statistical Analysis for Ratemaking

In their original form, Accident and Health policies typically extended coverage on the basis of stipulated benefits for hospital, surgical and medical expenses. About 15 years ago, however, the concept of Major Medical coverage began to emerge, which concept tended to cut across benefit maximums by type of medical expense and imposed only maximums of $5,000 or $10,000 for all expenses combined arising out of one disability. Such policies usually carried a relatively high deductible of $300 or $500 and provided that the policyholder, in addition to the deductible, would share in the loss at a fixed coinsurance percentage above the deductible.