If Insurers Charge Everyone the Same Premium Based on the Average

question 34

Multiple Choice

If insurers charge everyone the same premium based on the average cost of insuring the entire group,_____.

• A)the poor will drop out because the premiums are too high
• B)the middle class individuals will drop out because they can self-insure
• C)the healthiest individuals in the market will drop out
• D)the sickest individuals in the market will drop out

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Definitions:

Neural Networks

Computational models inspired by the human brain's network of neurons, used in artificial intelligence to simulate human-like learning.

Epigenetic Marks

Chemical modifications to DNA and histone proteins that regulate gene activity without altering the DNA sequence itself.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Schemas

Cognitive frameworks that help individuals organize and interpret information in the world around them.