Adverse selection in insurance business means that those__________ likely to get _________insurance benefits want to purchase insurance the most. Group of answer choices most; large least; small least; large most; small not; any
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A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
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A: Given : Consumer Demand : Q = 100 – PP PL = $70
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A: a. Fair contract premium can be calculated by using the following formula.
Q: Multiple Choice Adverse selection describes a situation where an individual's demand for insurance…
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A: Here, note that this incentive patients are bound to utilize ambulatory care since it somes cash and…
Q: may arise. This is when _____. A. Bismarck; insurers seek out healthy customers. B. Beveridge;…
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Q: Insurance Diagram Total Utility E U(W-L) B W-L P(W-L)+(1-p)W Expected If an insurance company…
A: * ANSWER :- By using given data the matching are given below
Q: Which of the following examples describe the "adverse selection problem"? ntara contoh berikut, yang…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: RAND study, two plans had full coverage for spending within the hospital, but one had a $150…
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A: Given, Income if person does not get sick = M = 40,000 Utility (M) = 200 Probability of getting sick…
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Q: 1) Suppose Al has an income of $25,000 and faces a 20% chance of having a serious medical problem…
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Q: Moral Hasard and Insurance The utility is U = W1/2 − 350S + 95S1/2 ; where W is wealth and S is…
A: GIVEN Moral Hasard and Insurance The utility is U = W1/2 − 350S + 95S1/2 ; where W is wealth and…
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Q: Mary is an 18-year-old student who recently bought a used car Mary is looking to buy car insurance…
A: When one party has more information than the other, there is always asymmetric information, which…
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- H applied for a individual major medical policy. When H filed a claim within the first year of coverage and the underwriter noticed that the H's age on the claim form was different than what was listed on the application. The insurer will take which of the following actions regarding H's claim? A: Deny the claim and refund premiums B: Deny the claim, cancel the policy and keep all premiums C: Pay the claim in full and keep the policy as is D: Adjust the claim benefit amount to the insured's correct ageInsurance coverage has been shown to diminish the importance of time in the decision about how much medical care to seek and which providers to use. True OR FalseAn individual has 40,000 in income per year. The person will get sick with probability 0.1. If he does get sick, the medical bills will total 30,000. The following tables shows the utility derived from certain amounts of income: Income Utility40,000 20037,000 19535,000 19030,000 17020,000 14010,000 100Considering the probability of illness, what is the expected utility of income without insurance? Show your work.
- How would you test the presence of multicollinearity?NO CHATGPT. In the US, private health insurance is usually purchased by groups rather than individuals. For example, most people are insured through their employer or their spouse’s employer. Which type of distortion does the insurance company need to worry about with individuals purchasing insurance versus groups? Why is group insurance preferable for the employer? Why is this preferable for the individual?20-2 A collogue tells you that he can get a business loan from the bank, but he rates seem very high for what our collogue considers a low risk loan. Give an adverse selection explanation for this, and offer advice to your friend on how to solve the problem. Give moral hazard explanation for this, and offer advice to your friend on how to solve the problem.
- ___ occurs when insurance companies structure plans that provide an incentive for healthier consumers to enroll while discouraging enrollment of higher-risk individuals a. Guaranteed renewability b. Cherry-picking c. Moral Hazard d. Asymmetric Information e. Adverse SelectionFor Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amountof $21,313.50. Outlier threshold for Medicare is $25,800. (a) John admitted hospital A for pancreas transplant. The charges for John’s treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much payment hospital A would get from Medicare?what does non-stationarity mean ?
- For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount of $21,313.50. Outlier threshold for Medicare is $25,800. (a) John admitted hospital A for pancreas transplant. The charges for John’s treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much payment hospital A would get from Medicare? (b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan’s treatment was same as John, $128,000, but cost to charge ratio for Hospital B was 0.25. How much payment hospital B would get from Medicare?Professional malpractice insurance __________ the insured for up to the specified policy limit for negligent acts performed by professional employees that injure clients. Multiple Choice disclaims indemnifies denies repudiates The insured transfers the risk of loss to the insurer for a price known as a/an __________. Multiple Choice All of the choices are correct premium co-pay allocation Chelsea and Autumn are principals to ABC Industries. ABC Industries needed a loan but could not pledge collateral. Therefore, Chelsea and Autumn gave a personal guaranty for the loan. Which statement below is correct? Multiple Choice Chelsea and Autumn have no personal liability. Chelsea and Autumn have pledged only their interest in ABC Industires. Chelsea and Autumn a secured debtors. Chelsea and Autumn have pledged their personal assets.For each of the following kinds of insurance, give anexample of behavior that reflects moral hazard andanother example of behavior that reflects adverseselection.a. health insuranceb. car insurancec. life insurance