What Can an Insurance Company Do to Reduce the Principal-Agent

question 56

Multiple Choice

What can an insurance company do to reduce the principal-agent problem?

• A) Give patients access to medical records, require doctors to justify tests, and pass reforms to medical malpractice laws.
• B) Give patients only limited access to medical records, force doctors to justify tests, and pass reforms to medical malpractice laws.
• C) Give patients access to medical records, allow doctors to determine which medical tests are appropriate, and pass reforms to medical malpractice laws.
• D) Give patients access to medical records, require doctors to justify tests, and repeal medical malpractice laws.
• E) There is no way to reduce the principal-agent problem.

---

Definitions:

Muscle Contraction

The activation of tension-generating sites within muscle fibers, essential for body movement and posture support.

Constant Force

A steady force applied over a period of time in physics or engineering, often in contrast to varying forces.

Free Weights

Exercise equipment like dumbbells or barbells that are not attached to other devices, offering a wide range of motion for strength training.

Labile Surface

An unstable or changeable surface used in training and rehabilitation to improve balance and muscle strength.