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.
Correct Answer:

Verified
Correct Answer:
Verified
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