Multiple Choice
Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) The characteristics of a large group are likely to reflect those of the entire population.
B) It is easier to accurately predict the number of claims for a group than for an individual.
C) When all group members pay the premium, the problem of moral hazard is reduced.
D) When all group members pay the premium, the problem of adverse selection is reduced.
Correct Answer:
Verified
Correct Answer:
Verified
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