A Good Way to Deal with Moral Hazard Faced by an Insurance

question 41

Multiple Choice

A good way to deal with moral hazard faced by an insurance company would be to:

• A)fully indemnify its policy holders.
• B)require applicants to take a physical examination.
• C)require policy holders to pay a deductible.
• D)conduct detailed investigations of every accident.

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Definitions:

Antagonistic Muscles

Muscles that work in pairs, with one muscle contracting while the other relaxes to create movement.

Orthostatic Hypotension

A type of hypotension that occurs upon transitioning from a sitting or prone position to standing, leading to feelings of dizziness or faintness.

Pancreatic Surgery

A medical procedure conducted on the pancreas to treat conditions such as cancer, pancreatitis, or benign tumors.

High-Fowler's Position

A sitting position with the back at a 60-90 degree angle, used to facilitate breathing and for various medical purposes.