If an insured under a Major Medical Insurance policy with a $200 deductible and an 80% coinsurance clause incurred the following covered expenses: Hospital room and board $2,000; Surgeon's fee $1,500. How much would the policy pay?

This option incorrectly applies the deductible and coinsurance calculations. It subtracts the deductible from both the hospital and surgeon fees separately before applying the coinsurance, which is not the correct method. The deductible should only be applied once to the total expenses before calculating the coinsurance.

This choice miscalculates the total payout by incorrectly deducting the deductible after applying the coinsurance to the total expenses. The correct approach is to first subtract the deductible from the total amount of covered expenses before applying the coinsurance percentage. This option does not follow the sequence needed for the correct calculation.

This answer fails to take the deductible into account prior to applying the coinsurance. It calculates the insurance payment based solely on the total covered expenses before deducting the $200 deductible, which leads to an inflated payout. The deductible must be subtracted first to accurately determine the amount eligible for coinsurance.