Under Community Rating

question 20

Multiple Choice

Under community rating,

• A) individual premiums are based on estimates of that individual's chances of becoming ill.
• B) individual premiums are based on the average risk level of the community as a whole.
• C) doctors receive higher average incomes.
• D) nurses receive higher average incomes.
• E) Blue Shield is a better economic investment than Blue Cross.

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Definitions:

Linear Model

A mathematical model that describes a linear relationship between two or more variables.

Model

A representation, often mathematical, of a real-world process, object, or concept, designed to simulate its behavior under certain conditions.

Applicable

Relevant or suitable in a given situation or for a specific purpose.

First-Birth Rate

The frequency at which first births occur within a defined population.