Asked by Imani Jones on Sep 24, 2024
Verified
As a way to still be able to transact with the low-risk individuals,insurance companies can
A) Offer them partial insurance
B) Offer them insurance with deductibles
C) Offer them insurance with co-payments
D) All of the above
Insurance With Deductibles
A type of insurance policy where the policyholder is required to pay a specified amount of loss before the insurance coverage begins paying out.
Low-Risk Individuals
People who are considered to have a lower probability of experiencing adverse events or making claims, often used in the context of insurance underwriting and premium setting.
Co-payments
Fixed amounts paid by an insured person for receiving specific health care services, with the insurance covering the remainder of the costs.
- Elucidate the function of deductibles, co-payments, and categorization within the pricing structures of insurance policies.
- Assess how insurance policies can be structured to accommodate both high and low-risk individuals.
Verified Answer
KS
kiana smith3 days ago
Final Answer :
D
Explanation :
Offering partial insurance, insurance with deductibles, and insurance with co-payments are all ways for insurance companies to still cover low-risk individuals while reducing the overall cost of insurance premiums. By requiring the insured to pay a portion of the cost, either upfront (in the case of deductibles) or during each visit (in the case of co-payments), the insurance company can limit their potential losses while still providing some level of coverage to their customers. All three options may be used together or separately, depending on the specific circumstances and the preferences of the insurance company. Therefore, the best choice is D, all of the above.
Learning Objectives
- Elucidate the function of deductibles, co-payments, and categorization within the pricing structures of insurance policies.
- Assess how insurance policies can be structured to accommodate both high and low-risk individuals.