The Pre-Existing Condition Insurance Plan Is a Federally Administered Part

question 15

Multiple Choice

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act, and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions, the Pre-Existing Condition Insurance Plan eliminates ________ for both the insurer and the insured, and eliminates ________ for the issuer of the insurance policy.

• A)the principal-agent problem; moral hazard
• B)asymmetric information; adverse selection
• C)adverse selection; the principal-agent problem
• D)moral hazard; adverse selection

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Definitions:

Composition Carbon

A resistor type made from compressed carbon or graphite mixture, known for its stability and reliability in a range of electrical applications.

Carbon Graphite

A form of carbon characterized by its crystalline structure, used in various applications like electrodes, lubricants, and as a reinforcing material.

Resin Bonding

A technique involving the adhesion of materials using a synthetic or natural resin to bind components together.

Open Circuit

A condition in an electrical circuit where there is a break in the circuit path, preventing current from flowing.