Which of the Following Is Not an Advantage of Risk

question 46

Multiple Choice

Which of the following is not an advantage of risk pooling?

• A)By insuring large groups as opposed to individuals, health insurance providers reduce adverse selection.
• B)It gives very sick people in the group the same access to health care and to pay the same premiums as healthy individuals.
• C)It is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy.
• D)Individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to over-use those services.

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Definitions:

Judicial Activity

The actions and decisions made by courts and judges, including ruling on laws, interpreting statutes, and deciding lawsuits.

Seven Tests of Just Cause

A guideline used in labor arbitration that helps determine whether an employer's disciplinary action against an employee was justified.

Arbitrator

A neutral third party who resolves disputes between labor and management by making decisions that are usually binding on both parties.

Employee

An individual who is hired by an organization or person to perform work under specific terms in exchange for compensation.