One Way to Limit the Problem of Adverse Selection in Health

question 8

Multiple Choice

One way to limit the problem of adverse selection in health insurance is to _____.

• A)investigate fraudulent activity
• B)promote competition in health insurance markets
• C)charge premiums in proportion to the probability of making claims
• D)a and c

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Definitions:

Advantages

Benefits or favorable factors that contribute to the success or effectiveness of something.

Resolution

A formal decision agreed upon by a group or body, often through voting, reflecting an action, direction, or intention.

Civil Lawsuit

A legal action taken by one individual or entity against another in a civil court to seek redress or compensation for a wrong or injury.

Brake Failure

A mechanical defect that results in a vehicle's braking system not operating as intended, potentially leading to accidents.