A Good Way to Deal with Adverse Selection Faced by an Insurance

question 57

Multiple Choice

A good way to deal with adverse selection faced by an insurance company would not be to:

• A)fully indemnify its policy holders.
• B)require applicants to take a physical examination.
• C)require policy holders to pay a deductible.
• D)insure groups of individuals (such as all employees of a particular firm).

---

Definitions:

Sterile Disposable Gloves

Medical gloves that are designed to be used once and thrown away, made of materials like latex, nitrile, or vinyl, and are free from living organisms.

Paralytic Ileus

A medical condition characterized by a temporary paralysis of the intestine, halting the movement of food through the bowels.

Chronic Cathartic Abuse

The long-term overuse of laxatives, leading to dependence and potentially causing significant harm to the digestive system.

Anaesthesia

The use of medication to prevent pain during surgery by inducing a temporary state of either total or partial loss of sensation.