Which of the Following Practices Mitigates Moral Hazard

question 89

Multiple Choice

Which of the following practices mitigates moral hazard?
I. A health insurance company's policy requires a $500 deductible and a 20% coinsurance rate.
II. Progressive Insurance offers drivers a discount for using a black box that records miles driven and the number of sudden stops.
III. Homeowner insurance does not cover claims arising from backyard swimming pools.

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

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Definitions:

Filing Limit

The maximum time period allowed after an event within which legal proceedings may be initiated or claims must be submitted.

Insurance Company

A financial institution that provides coverage against certain risks in exchange for premium payments.

Patient Liability

The portion of healthcare costs that a patient is personally responsible for, including copayments, deductibles, and any services not covered by insurance.

Paid

Receiving money or compensation in exchange for services rendered or as an employee.