Many Health Insurers Require a Deductible Where the Policyholder Pays

question 101

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)Information symmetry
• B)Adverse selection
• C)People going uninsured
• D)Moral hazard

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Definitions:

Interim Financial Report

A financial statement reporting a corporation's performance over a period shorter than a fiscal year, usually quarterly.

Net Income

The financial metric representing the company's profit calculated by removing all relevant expenses from its total revenue.

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares of common stock, indicating the amount of profit attributed to each share.

Operating Segment

An operating segment is a component of a company that engages in business activities from which it can earn revenues and incur expenses, and whose operating results are regularly reviewed by the company's management.