Many Health Insurers Require a Deductible Where the Policyholder Pays

question 118

Multiple Choice

Many health insurers require a deductible where the policyholder pays the first part of any loss. The use of a deductible most directly treats the problem of:

• A) free riding.
• B) adverse selection.
• C) people going uninsured.
• D) moral hazard.

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Definitions:

Negative Charge

An electrical charge that results from an excess of electrons, giving the particle or object a net negative electric charge.

Electrons

Negatively charged subatomic particles that orbit an atom's nucleus, playing a key role in chemical reactions and electricity.

Covalent

Covalent refers to a type of chemical bond where atoms share pairs of electrons to achieve a full outer shell and stability.

Ionic

Refers to the chemical bond formed between atoms when electrons are transferred from one atom to another, resulting in positively and negatively charged ions.