A risk group can be defined as a group that shares roughly the same risks of an adverse event occurring. Insurancecompanies often classify people into risk groups, and charge lower premiums to those with lower risks. How does thispractice effect the market for healthcare?Select the correct answer below:If people are not separated into risk groups, then those with low-risk must pay for those with high risks.When people are classified into risk groups each pays according to their risk.O When risk group are used to establish the cost of health care those with high risk cannot afford the cost of care.All of the above.

Risk is something which is bear by insurance company in consideration of premium that they have…

A risk group căn be đefined as a group that shares ghly the same risks of an adverse event occurring. Insurance companies often classify people into risk groups, and charge lower premiums to those with lower risks. How does this practice effect the market for healthcare? Select the correct answer below: O If people are not separated into risk groups, then those with low-risk must pay for those with high risks. O When people are classified into risk groups each pays according to their risk. O When risk group are used to establish the cost of health care those with high risk cannot afford the cost of care. All of the above.

A risk group căn be đefined as a group that shares ghly the same risks of an adverse event occurring. Insurance companies often classify people into risk groups, and charge lower premiums to those with lower risks. How does this practice effect the market for healthcare? Select the correct answer below: O If people are not separated into risk groups, then those with low-risk must pay for those with high risks. O When people are classified into risk groups each pays according to their risk. O When risk group are used to establish the cost of health care those with high risk cannot afford the cost of care. All of the above.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Having convertible term life insurance is especially beneficial if you run into severe health issues as you age. True O False
Sign in to Google to save your progress. Learn more Required ANSWER ALL QUESTIONS 1. Insurable interest refers to O A. the item to be insured should be legal and not against public policy O B. accidental, unintentionally and randomly occurred loss O C. a legally recognized relationship between the insured and the financial loss O D. risk that have high frequency and high severity 2. When two or more policies cover the same loss, the right of the one insurer to call upon the othe
Why are people often willing to pay more for insurance than the expected valueof the coverage?
One problem facing insurers is that there is a risk that a person will act differently if he/she does not bear all of the consequences of his/her actions. For instance, people with auto insurance policies may drive less carefully than they would drive if they were going to have to pay the full amount of any damages they caused/created. This problem is known as: A. Adverse selection B. Consumer deception C. Moral hazard D. Insurance fraud
By increasing demand, health insurance creates a. A deadweight loss related to overconsumption. b. A deadweight loss related to underconsumption. c. Neither of the above.
You would have a better chance of insurance coverage for medical services not provided by the network with a preferred provider organization (PPO) than with a health maintenance organization (HMO) plan. Group of answer choices a. True b. False
Insurance planning is important to protect a person from an unforeseen event like premature death, disability, illness, property loss, liability or unemployment. However, conventional insurance is prohibited in the Shariah because _____ a. It involves conventional investment planner. b. It is against the faith of destiny (qada wa qadar) that everything is decided by Allah the almighty c. It involves uncertainty (gharar) in the transaction
Compare and contrast the early historical accounting for postretirement health care and life insurance benefits with the guidance or rules in place today.
The best strategy for health insurance coverage is to purchase a comprehensive policy. Of the following, which additional coverage should you not buy if it is not provided at work or in your individual policy? ○ Accident Terminal Disease O Dental O Eyewear O You should not buy any of the above
1. Show (give example) how an individual’s risk aversion can be estimated. 2. Explain why we can not aggregate individuals’ risk aversion measures.
How does the imperfect information in insurance markets cause an increase in health care costs? Explain with great detail.
The following information has been gathered onthe costs and effectiveness of the two treatments, Aand B. In this problem, costs and consequences arenot discounted.a. What is the total cost for the survivors receivingtreatment A? For decedents (assuming suddendeath)?b. What is the total cost for survivors receivingtreatment B? For decedents?c. What is the expected cost for those patientsreceiving treatment A? And treatment B?d. Draw a simple decision tree showing the costsand consequences of each treatment option.e. Calculate the incremental cost and incrementalbenefit of the treatment alternatives.f. What is the ICER?

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