One Way That Insurance Companies Can Reduce the Moral Hazard

question 196

Multiple Choice

One way that insurance companies can reduce the moral hazard problem is to

• A) make insurance customers pay a deductible before the company pays on a claim.
• B) engage in genetic testing to determine who is more likely to be high risk.
• C) eliminate copayments on insurance claims.
• D) insure only customers with good morals.