Risks Faced by Insurance Companies Include

question 56

Multiple Choice

Risks faced by insurance companies include:

• A)adverse selection
• B)fraudulent claims
• C)investment risk
• D)moral hazard posed by insured individuals not taking due care to avoid an insured event.
• E)All of these.

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Definitions:

Single-Payer System

A healthcare system in which a single public or quasi-public agency organizes health care financing, but delivery of care remains largely in private hands.

Entrepreneurial Features

Characteristics or attributes common among entrepreneurs, such as innovation, risk-taking, and the ability to identify and exploit market opportunities.

Malpractice Lawsuits

Legal actions initiated against healthcare providers for negligence or failure to meet accepted standards of care, resulting in harm to patients.

Aging Population

denotes an increase in the median age of a population due to declining birth rates and/or increasing life expectancy, posing various societal challenges.