Which of the Following Is True Regarding the Reduction of the Impact

question 24

Multiple Choice

Which of the following is true regarding the reduction of the impact of moral hazard by insurers?

• A) It is not possible for insurers to reduce the risk of moral hazard, and this is seen as a risk of doing business.
• B) Insurers refuse to pay claims believed to result from the effects of moral hazard.
• C) The only avenue for insurers seeking to reduce moral hazard is through the use of deductibles.
• D) The only avenue for insurers seeking to reduce moral hazard is through refusing to insure those who have previously made multiple insurance claims.
• E) Insurance companies lessen the impact of moral hazard by requiring that individuals with insurance make co-payments or pay a deductible.

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Definitions:

Employer-Established System

A framework or set of procedures created by employers to standardize operations, manage employee relations, and ensure regulatory compliance within an organization.

NLRA

The National Labor Relations Act (NLRA) is a foundational statute in United States labor law which guarantees the rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action, including strikes.

Arbitrator's Decisions

Binding rulings made by an arbitrator or arbitrators in a dispute resolution process, typically involving labor management and employee conflicts.

Employment Matters

Issues, discussions, and policies related to the employment relationship between employers and employees, including hiring, termination, benefits, and workplace practices.