The Cost of Group Health Insurance Is Lower Than If

question 151

Multiple Choice

The cost of group health insurance is lower than if an individual buys a policy on his own because

• A)the problem of adverse selection is reduced.
• B)moral hazard costs of a group tend to move to a low average.
• C)it is easier for the company to deny claims from a large group.
• D)insuring a group eliminates the problem of buyers having more information than the seller.

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Definitions:

Oxygen

A chemical element essential for respiration in many living organisms, represented by the symbol O.

Dexterity

Skill in performing tasks, especially with the hands, indicating coordination, speed, and precision.

Club

An association or organization of people with a common purpose or interest, who meet regularly and take part in shared activities.

Traumatic Brain Injury

A form of acquired brain injury occurring when a sudden trauma causes damage to the brain, which can result in temporary or permanent cognitive, physical, and psychosocial impairments.