Mention some of ways in which insurers control the problem of moral hazard
Insurance and other contracts often contain provisions designed to reduce the attractiveness of morally hazardous behavior. To avoid defeating the purpose of insurance, these provisions attempt to raise the costs of making claims that the policyholder can control, while still allowing recovery for major uncontrollable incidents. Co-payment or coinsurance, deductibles, and non-price exceptions are some of the provisions used by insurers to control the problem of moral hazard.
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Normative statements
i. describe how the world is. ii. describe how the world ought to be. iii. depend on people's values and cannot be tested. A) ii only. B) i and iii. C) iii only. D) i only. E) ii and iii.
If the quantity demanded changes proportionately the same as price, demand is said to be
A) vertical. B) elastic. C) unit elastic D) inelastic.
The achievement of the optimal allocation of society's scarce resources requires that regulators set prices equal to firms marginal cost
a. True b. False
Promoting the development of chemical technologies to achieve pollution prevention
a. is the objective of the Green Chemistry Program b. defines the commitment of Extended Product Responsibility c. is required under TSCA d. all of the above e. none of the above