An Insurance Management Tool to Reduce Moral Hazard Is to ________

question 62

Multiple Choice

An insurance management tool to reduce moral hazard is to ________.

• A)charge risk-based premiums
• B)not allow restrictive provisions
• C)reduce the deductible to zero
• D)prohibit coinsurance

---

Definitions:

Net Capital Outflow

The difference between the domestic country's purchases of foreign assets and foreign investments in the domestic country over a specific period.

Net Exports

Net exports are the value of a country's total exports minus the value of its total imports, a key component in calculating a nation's gross domestic product (GDP).

Foreign Portfolio Investment

Investment in financial assets from another country, such as stocks or bonds, that does not grant the investor control over the business entities in which the investment is made.

U.S. Government Bonds

Securities issued by the United States Department of the Treasury to finance government spending.