One Way of Screening in the Automobile Insurance Market Is

question 78

Multiple Choice

One way of screening in the automobile insurance market is for companies to

• A) offer policies with different deductibles and different premiums.
• B) insure only careful drivers.
• C) insure only risky drivers.
• D) eliminate policies with no-claim bonuses because these policies are usually not profitable.
• E) offer warranties.

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Definitions:

Manipulation

The act of controlling or influencing others in a deceptive or indirect way.

Research Designs

The framework or plan for a study that outlines how data is to be collected, analyzed, and interpreted.

Variables

Elements or factors that can change and potentially influence the outcome of scientific research or experiments.

Manipulation

The act or practice of controlling or influencing someone or something to achieve a desired outcome, often in a deceptive way.