Which Statement Is TRUE If the Insurance Market Is Efficient

question 135

Multiple Choice

Which statement is TRUE if the insurance market is efficient?

• A)The deductibles eliminate moral hazard.
• B)Society as a whole engages in less risky behavior.
• C)It transfers risk from those who most want to get rid of it to those least bothered by the risk.
• D)Premiums are always kept to the level of a fair insurance policy.

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Definitions:

Internet

A global network connecting millions of computers for the exchange of data, news, and opinions.

Second Opinion

Seeking an additional professional evaluation or viewpoint on a medical diagnosis, treatment plan, or any decision-making scenario.

Rules And Regulations

Established guidelines or principles governing conduct, actions, and procedures within a specific area or organization.

Social Support System

A network of friends, family, and peers that provide emotional, informational, and instrumental assistance.