Which of the Following Is Not an Advantage of Risk

question 97

Multiple Choice

Which of the following is not an advantage of risk pooling?

• A)By insuring large groups as opposed to individuals, health insurance providers reduce adverse selection.
• B)It gives very sick people in the group the same access to health care at the same premiums as healthy individuals.
• C)It is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy.
• D)Individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to over-use those services.

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Definitions:

Neutral Fiber

In beam bending, it's the fiber at the midpoint of the cross section which experiences no compressive or tensile stress when the beam is flexed.

C-Channel Frame

The structure of a frame, often used in vehicle construction or building, characterized by its cross-sectional shape resembling the letter "C", providing strength and flexibility.

Flanges

Flat rims, edges, ribs, or collars, often used to strengthen an object, attach it to another object, or for handling.

Section Modulus (SM)

A geometric property for a given cross-section used in the design of beams or flexural members.