Insurers Try to Minimize Moral Hazard by

question 17

Multiple Choice

Insurers try to minimize moral hazard by

• A) only selling policies to individuals with high ethical standards.
• B) requiring advance payments of premiums.
• C) charging higher premiums to individuals than to groups.
• D) charging deductibles and coinsurance.
• E) refusing to sell insurance to individuals with chronic illnesses.

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Definitions:

Pleurisy

An inflammation of the pleura, the two layers of membranes surrounding the lungs and lining the chest cavity.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, crucial for breathing.

Bronchioles

Small airways in the lungs that lead from the bronchi to the alveolar sacs, responsible for carrying air in and out of the lungs during respiration.

Intubation

The procedure of inserting a tube into the body, typically into the trachea for ventilation purposes.