Which Statement Is TRUE If the Insurance Market Is Efficient

question 90

Multiple Choice

Which statement is TRUE if the insurance market is efficient?

• A) The deductibles eliminate moral hazard.
• B) Society as a whole engages in less risky behaviour.
• C) It transfers risk from those who most want to get rid of it to those least bothered by the risk.
• D) Premiums are always kept to the level of a fair insurance policy.

---

Definitions:

Sustainability Initiative

Programs or projects aimed at promoting environmental, economic, and social sustainability within organizations and communities.

Potential Partners

Individuals, groups, or entities that a business may consider collaborating with for mutual benefit, often to expand markets or share resources.

Exit Strategies

Strategies for withdrawing from a business venture, investment, or situation.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.