The Use of Deductibles and Coinsurance Are Examples of Attempts

question 25

Multiple Choice

The use of deductibles and coinsurance are examples of attempts by insurance companies to deal with the problem of

• A)moral hazard.
• B)adverse selection.
• C)failure of policyholders to keep paying their premiums.
• D)excessive government regulation.

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Definitions:

Commercial Sanctions

Penalties imposed by one country or a coalition of countries against another for economic reasons, often to discourage certain policies or activities.

Hamilton's Financial Programs

A series of measures proposed by Alexander Hamilton, the first U.S. Secretary of the Treasury, aimed at stabilizing the American economy after the Revolutionary War, including the establishment of a national bank.

Amendment

An Amendment is a formal change or addition proposed or made to a legal document, particularly constitutions, statutes, and contracts, to improve, clarify, or update its content.

Washington

The capital city of the United States, named after George Washington, and serving as the seat of the federal government.