Which of the Following Is an Example of a Non-Price

question 48

Multiple Choice

Which of the following is an example of a non-price provision in an automobile insurance contract that can reduce moral hazard?

• A)A provision specifying that coverage is limited to 75 percent of the total damages caused by an accident.
• B)A provision that disallows medical claims by drunk drivers involved in accidents.
• C)A provision that restricts accident compensation to claims over $1,000.
• D)A provision requiring that the insured car carry certain safety devices like air bags.

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Definitions:

Economic Responsibility

The obligation of an organization to make decisions that benefit the economic well-being of society and its stakeholders.

Legal Responsibilities

Encompasses the obligations that organizations and individuals have to abide by laws and regulations in their professional conduct.

Corporate Social Responsibility

A strategy for business that promotes sustainable development through ensuring economic, social, and environmental advantages for every stakeholder involved.

Diversity Practices

Strategies and policies implemented within organizations to promote and support diversity in the workplace environment.