What Is One Way Insurers Address Moral Hazard (Hidden Action)problems

question 1

Multiple Choice

What is one way insurers address moral hazard (hidden action) problems to align the interest of the insured with the insurer?

• A)Underwriting all applicants for insurance
• B)Charging lower premiums for riskier ventures
• C)Performance based incentives (i.e. linking premiums to presence of fire detectors)
• D)Insuring different parties from the same industry
• E)Require full disclosure of all information (i.e. health status prior to issuing an income annuity)

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Definitions:

Future Leaders

Individuals within an organization who have been identified as having the potential to take on significant leadership roles in the future, usually as part of talent development programs.

Succession Management

A strategy for identifying and developing future leaders within an organization.

Senior Executive Turnover

This term refers to the rate at which top management personnel leave an organization and are replaced by others, which can impact the organizational stability and strategic direction.

HR Supply Planning

The process used by human resources to ensure that the organization has the right number of employees with the necessary skills in the right places at the right times.