Which of the Following Is Not an Advantage to an Insurance

question 159

Multiple Choice

Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?

• A)The characteristics of a large group are likely to reflect those of the entire population.
• B)It is easier to accurately predict the number of claims for a group than for an individual.
• C)When all group members pay the premium, the problem of moral hazard is reduced.
• D)When all group members pay the premium, the problem of adverse selection is reduced.

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Definitions:

Puberty

The period during which adolescents reach sexual maturity and become capable of reproduction.

Personal Fable

A belief held by adolescents that they are unique and invulnerable, contributing to risk-taking behaviors.

Post-Operational Thought

Advanced stages of cognitive development in Piaget's theory, characterized by the ability to think logically about abstract concepts.

Moral Reasoning

The process by which individuals make decisions about what is right or wrong based on ethical considerations and principles.