By Requiring That Policyholders Pay a Deductible on a Claim

question 183

Multiple Choice

By requiring that policyholders pay a deductible on a claim, insurers guard against

• A)symmetrical information
• B)adverse selection
• C)natural selection
• D)moral hazard
• E)the winner's curse

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Definitions:

Clear And Easy

Describes information, instructions, or processes that are straightforward, simple to understand, and unambiguous.

Sales Process

A set of repeatable steps a company takes to move a potential buyer from the early stage of awareness to a closed sale.

Specific Goals

Clear, defined objectives that are easy to understand and measure, facilitating task completion and providing direction.

Goal-Setting Theory

A psychological theory suggesting that setting specific, challenging, and attainable goals can significantly influence motivation and performance.