Adverse Selection Can Be Controlled By

question 17

Multiple Choice

Adverse selection can be controlled by:

• A)implementing cafeteria-style plan.
• B)removing the limitations on coverage amounts.
• C)pricing certain benefits options lower.
• D)providing better benefits package options.
• E)limiting coverage amounts.

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Definitions:

Advertising

The process of making ads for the marketing of goods or services.

Insurance Company

A business entity that provides financial coverage to individuals and entities against potential losses or damages in exchange for premium payments.

Insurable Interest

A stake in the value of an entity or thing that provides a legal right or requirement to insure it.

Insurance Contract

A legally binding agreement between an insurance company and the policyholder, specifying the terms for the payment of insurance benefits.