Which of the Following Additions to an Insurance Contract Will

question 72

Multiple Choice

Which of the following additions to an insurance contract will not act to reduce moral hazard?

• A)Co-payments for covered costs.
• B)Deductibles for covered costs, that is, the first X dollars of claims are paid by the insured.
• C)Cost caps, that is, limitations on total payments that can be made from a claim.
• D)Age limitations on who can be insured.

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Definitions:

Lessor

The party in a lease agreement that owns the leased property and grants its use to another party, known as the lessee, for a specified period.

Valuable Broach

A piece of jewelry, especially a large decorative pin or clasp, that is considered of high monetary or sentimental value.

Legal Claim

A demand for rights or properties due to a dispute brought before a court.

Rightful Owner

The individual or entity that legally possesses property or rights, typically recognized through ownership documents or legal actions.