Which of the Following Is Not an Advantage of Risk

question 46

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 and to pay 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:

Recall

The transfer of information from long-term memory into short-term memory.

Credit Cards

Financial tools issued by financial institutions allowing cardholders to borrow funds within a pre-approved limit for purchases or cash advances.

Overwhelmed

A feeling of being burdened with too much to handle, often resulting in stress or anxiety.

Retain

To retain is to keep possession of or continue to have something without letting it go or losing it.