Which of the Following Methods Reduce Adverse Selection in Insurance

question 53

Multiple Choice

Which of the following methods reduce adverse selection in insurance markets?
I. selling insurance policies to groups of employees in a firm
II. requiring medical exams for anyone purchasing life insurance
III. denying insurance coverage to people with preexisting health conditions
IV. mandating by law that all people must buy health insurance

• A) I, II, III, and IV
• B) I and III
• C) III
• D) I and II

Distinguish between different levels of activities (Unit-level, batch-level, product-level, facility level).

Calculate overhead cost per unit using ABC.

Identify appropriate cost drivers for allocating overhead costs.

Compute departmental overhead rates.

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Definitions:

High-Context Culture

Cultures where communication is often indirect and the context of the message is just as important as the words used.

Ethical Dilemma

A situation where an individual or organization must choose between alternatives that may be considered right or wrong, posing a challenge to moral principles.

Ethical Lapse

A failure to behave in an ethically correct manner, often leading to a breach of trust or violation of established codes.

Ethical Communication Choices

Decisions made in communication that are guided by moral principles and respect for others.