Indicate whether the statement is true, false, or unclear, and justify your answer.If a health insurance company could somehow monitor everything a customer does and thinks, it could create a full-insurance contract with no moral hazard.
Indicate whether the statement is true, false, or unclear, and justify your answer.If a health insurance company could somehow monitor everything a customer does and thinks, it could create a full-insurance contract with no moral hazard.
Chapter8: Managed Care
Section: Chapter Questions
Problem 3QAP
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Question
Indicate whether the statement is true, false, or unclear, and justify your answer.
If a health insurance company could somehow monitor everything a customer does and thinks, it could create a full-insurance contract with no moral hazard.
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The moral hazard refers, the situation in which one party engaged on a risk by knowing that other party is protected against the risk.
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