Which of the Following Statements About the Insurer Death Spiral

question 17

Multiple Choice

Which of the following statements about the insurer death spiral is correct?

• A) The insurance pool is shrinking to those who really need insurance.
• B) The government has enacted laws to prevent the death spiral.
• C) The insurance pool is shrinking to those who are facing low risk.
• D) The insurance premium that needs to be paid is minimized.

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Definitions:

Phonemic

Relating to the units of sound in a language that distinguish one word from another, for example, the difference between the sounds /p/ and /b/ in "pad" and "bad."

Structural

Pertaining to the arrangement and relations between parts or elements of something complex.

Semantic

Pertaining to the meanings of words and symbols in language, dealing with understanding the meaning and structure of sentences.

Early-Selection Theories

Theories in cognitive psychology that suggest attention acts as a filter at an early stage of information processing, allowing only certain stimuli to reach awareness.