An insurance company can protect itself from moral hazard by:

Related MCQs

• If the government subsidizes the health insurance costs of individuals because individuals do not sufficiently realize the importance of having health insurance, which of the following justifications for government intervention is being used?
• The government can address by providing universal health insurance coverage and charging uniform premiums.
• A situation where people who have taken out insurance behave more recklessly as a result is known as:
• When the average buyer of an insurance policy is likely to have higher risk than others in his class, this is known as
• When people behave in ways that involve increased risk because they have insurance, this is known as
• Suppose that you have complete health insurance that covers all expenses. You will use medical care up to the point where your:
• Which of the following is a reason why employers are the predominant source of insurance?
• If reckless drivers are more likely to buy automobile insurance than safe drivers are,
• Adverse selection in competitive insurance markets harms
• Market failure can occur when