All of the Following Are Ways in Which Health Insurance

question 32

Multiple Choice

All of the following are ways in which health insurance companies can potentially reduce adverse selection except

• A)by insuring only large groups of people.
• B)by lowering the co-payments and deductibles on the policies they issue.
• C)by refusing to insure some applicants,for example based on prior health conditions.
• D)by finding out as much information about a person applying for insurance,for example requiring a medical examination.

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Definitions:

Advertising

The activity of promoting goods or services through various forms of media to attract consumer interest and increase sales.

Customer Servicing

The provision of assistance and advice to those who buy or use a company's products or services.

Traditional Costing System

A costing method that allocates factory overhead to products based on volume metrics such as machine hours or labor hours, often not capturing the true costs of complex manufacturing processes.

Product Costs

Expenditures directly tied to the creation of a product, including direct materials, direct labor, and manufacturing overhead.