If a Health Insurance Company Offers Coverage Regardless of Age,health

question 31

Multiple Choice

If a health insurance company offers coverage regardless of age,health status,or smoking history,it is likely to suffer

• A) moral hazard problems.
• B) adverse selection problems.
• C) lower costs.
• D) low demand for its product.
• E) a screening equilibrium.

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Definitions:

Non-liquidated Damages

Compensation amounts not specified in a contract, to be determined in case of a breach according to the actual harm suffered.

Employer Fines

Penalties imposed on employers for violations of employment laws or regulations.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society.

Certainty Avoidance

A cognitive behavior aiming to prevent ambiguity and ensure clarity in communication or information processing.