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    Exam 9: Imperfect Information, External Benefits, and External Costs
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    One Way That Insurance Companies Can Reduce the Moral Hazard
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One Way That Insurance Companies Can Reduce the Moral Hazard

Question 196

Question 196

Multiple Choice

One way that insurance companies can reduce the moral hazard problem is to


A) make insurance customers pay a deductible before the company pays on a claim.
B) engage in genetic testing to determine who is more likely to be high risk.
C) eliminate copayments on insurance claims.
D) insure only customers with good morals.

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