Multiple Choice
Which of the following additions to an insurance contract will not act to reduce moral hazard?
A) Co-payments for covered costs.
B) Deductibles for covered costs, that is, the first X dollars of claims are paid by the insured.
C) Cost caps, that is, limitations on total payments that can be made from a claim.
D) Age limitations on who can be insured.
Correct Answer:
Verified
Correct Answer:
Verified
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