What is the difference between the premium and the deductible?

The difference between a premium and the deductible is an important concept when it comes to insurance regulation law in Rhode Island. A premium is the amount of money that must be paid for an insurance policy each month or year. It is the cost of the policy, and it is the same regardless of whether you have a claim or not. A deductible is an amount of money that a policyholder must pay out of pocket before the insurance coverage kicks in. It is an amount of money that must be paid before the insurance provider will cover anything else. For example, if you have health insurance with a $200 deductible, you must pay the first $200 of any medical bills you incur before the insurance company will cover the rest. On the other hand, the premium for the policy will remain the same whether or not you ever need to use the coverage. In Rhode Island, the premium and deductible are both important aspects of insurance regulation law. The premium determines the cost of the policy, while the deductible determines how much you must pay out of pocket before the insurance company will cover the rest. Being aware of the differences between these two concepts is important for anyone that needs insurance coverage in Rhode Island.

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What is the difference between the premium and the deductible?

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