In Reality Market Imperfections Exist That Can Raise the Cost

question 35

Multiple Choice

In reality market imperfections exist that can raise the cost of insurance above the actuarially fair price and offset some of these benefits.These insurance market imperfections include all of the following except

• A) adverse selection.
• B) agency costs.
• C) administrative and overhead costs.
• D) taxation of insurance payments.

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Definitions:

Physician

A medical professional qualified to practice medicine, diagnose illnesses, and prescribe treatments.

Standard of Care

The degree of caution and attention to patient safety and well-being that a healthcare professional is expected to meet.

Nurse's Bill of Rights

A declaration detailing the rights of nurses in the workplace, designed to ensure safe and ethical nursing practice.

Fair Compensation

Equitable remuneration for work performed or services provided.