When the Monopoly Insurer Cannot Observe the Care Taken by the Insured

question 15

Multiple Choice

When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident,the most profitable contract for it:

• A)offers full insurance at a higher price than the full-information policy.
• B)offers full insurance at a lower price than the full-information policy.
• C)offers partial insurance at a higher price than the full-information policy.
• D)offers partial insurance at a lower price than the full-information policy.

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Definitions:

Skin Breakdown

The loss of integrity of the skin, often resulting from prolonged pressure or friction, leading to ulcers or wounds.

Expected Outcomes

Anticipated result or effect of a specific intervention or course of action in a healthcare context.

Confused Patient

Refers to an individual who is experiencing disorientation or a lack of clarity in thinking, often observed in medical settings.

Bed Alarm

A device used to alert caregivers when a patient or individual attempts to leave their bed, enhancing patient safety.