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Which of the Following Is an Example of a Non-Price

Question 48

Multiple Choice

Which of the following is an example of a non-price provision in an automobile insurance contract that can reduce moral hazard?


A) A provision specifying that coverage is limited to 75 percent of the total damages caused by an accident.
B) A provision that disallows medical claims by drunk drivers involved in accidents.
C) A provision that restricts accident compensation to claims over $1,000.
D) A provision requiring that the insured car carry certain safety devices like air bags.

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