A Product Is Often Described as Having a Thin Margin

question 68

Multiple Choice

A product is often described as having a thin margin or a wide margin. With regard to the factors that help determine the size of the margin of a health plan's product, it can correctly be stated that the

• A) greater the risk a health plan assumes in a health plan, the thinner the product margin should be
• B) more that competition acts to force prices down, the wider the product margins tend to become 34
• C) greater the demand for the product, the thinner the margin for this product tends to become
• D) longer the premium rates are guaranteed to a group, the wider the health plan's margin should

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Definitions:

Occupier's Liability

Legal responsibility of property owners or tenants to ensure the safety of those who enter their premises, protecting them from harm caused by hazards.

Nuisance

An act, condition, or thing causing inconvenience or damage to others, often relating to the use of property.

Professional Liability

The legal responsibility professionals have to compensate for losses due to errors or omissions in their services.

Negligence

A legal concept involving a failure to take reasonable care to avoid causing injury or loss to another person, leading to liability for damages.