Question

What do insurance companies pay to compensate consumers after a loss?

copayments
deductibles
payouts
premiums

Answer 1

Insurance companies pay **payouts** to compensate consumers after a loss.

Here's a brief explanation of the other terms:

- **Copayments** are fixed amounts paid by the insured for specific services, usually in health insurance.
- **Deductibles** are the amounts the insured must pay out of pocket before the insurance company starts to pay for covered losses.
- **Premiums** are the payments made to the insurance company to maintain coverage.

So, in the context of compensation after a loss, the correct term is **payouts**.