Which of the Following Practices of Insurers Deter Moral Hazard

question 18

Multiple Choice

Which of the following practices of insurers deter moral hazard?

• A)Setting a uniform premium structure.
• B)Requiring people to purchase the same coverage.
• C)Arranging for reinsurance to cut the risk of unexpectedly large claims.
• D)Conducting security checks without notice and terminating the policy whenever required.

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Definitions:

Brachialgia

Pain in the arm, often deriving from nerve irritation or damage.

Pain

A disagreeable feeling and emotional response linked to real or possible harm to the body's tissues.

Tenodynia

Pain in a tendon, often due to strain or overuse.

-Dynia

A suffix used in medical terms to denote pain, often used in conjunction with the part of the body affected (e.g., pleurodynia).