It Is Generally Agreed That in the Long Run the Cost

question 140

Multiple Choice

It is generally agreed that in the long run the cost of private health insurance provided by employers is

• A)at the expense of business profits.
• B)at the expense of real wages.
• C)paid by taxpayers through government.
• D)included as taxable income for income tax purposes.Difficulty: 01 Easy

---

Definitions:

Insurable Interest

A requirement stating that a person seeking to purchase an insurance policy must have a direct interest in protecting the object of the insurance from loss.

Equitable Interest

A legal interest in property that gives a party a financial stake or benefit in the property, though not necessarily an ownership interest.

Life Insurance Policy

A contract between an individual and an insurance company, where the company pays a designated beneficiary a sum of money upon the death of the insured person.

Covered Peril

A specific risk or cause of loss that is protected against under the terms of an insurance policy.