If Insurance Companies Are Required to Offer Coverage to All

question 12

Multiple Choice

If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased.Assume that the insurance market is perfectly competitive.What is the major reason for raising the premium?

• A)The insurance companies take advantage of the increased demand and collude.
• B)Medical services are more expensive because of increased demand.
• C)Less healthy people join the pool of insured and hence increase the risk and the premium.
• D)none of the statements associated with this question are correct.

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Definitions:

Disorder

A state of confusion, disarray, or a medical condition characterized by a disruption of normal functioning.

Emotional Symptom

A manifestation of an emotional disturbance that can affect a person's wellbeing and functioning, such as sadness, anxiety, or irritability.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think and how you act, leading to feelings of sadness and/or a loss of interest in activities once enjoyed.

Depressive Disorder

A category of mood disorders characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in daily activities.