Insurance Policies Typically Stipulate a Deductible Amount Which the Insured

question 79

Multiple Choice

Insurance policies typically stipulate a deductible amount which the insured must shoulder; this is to address the problem of:

• A) Adverse selection
• B) Externalities
• C) Moral hazard
• D) Public goods

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Definitions:

Assimilation

The cognitive process by which new information is interpreted or absorbed into an existing schema.

Preoperational Stage

Piaget’s second stage of cognitive development, in which the preschool child learns to use language as a means of exploring the world.

Cognitive Life

Refers to the mental processes and activities related to thinking, perceiving, and understanding that characterize living organisms.

Centration

A cognitive limitation in early childhood, where a child focuses on one aspect of a situation while neglecting others.