Insurance Policies Typically Stipulate a Deductible Amount Which the Insured

question 164

Multiple Choice

Insurance policies typically stipulate a deductible amount which the insured must pay; this is to address the problem of

• A) adverse selection.
• B) externalities.
• C) moral hazard.
• D) public goods.

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Definitions:

Absolute

Unconditional; complete and without restrictions or limitations.

Conditional

Subject to one or more conditions or requirements being met; not absolute.

Constitutional Privilege

A right or immunity granted under the constitution that provides protection to individuals against certain government actions.

Invasion of Privacy

The violation of a person's right to live without being subjected to unwarranted and undesired publicity or intrusion.