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:

Homoplastic

Exhibiting similarity in appearance due to convergent evolution rather than ancestry.

R. H. Whittaker

An American ecologist famous for proposing the five kingdom classification of organisms in 1969.

Five-kingdom Classification

A system of categorizing all living organisms into five groups: Monera, Protista, Fungi, Plantae, and Animalia.

Four-kingdom Classification

An outdated system of biological classification organizing living organisms into four major kingdoms: Protista, Fungi, Plantae, and Animalia.