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Insurance Companies That Sell Insurance to Individuals Are Able to Minimize

Question 40

Multiple Choice

Insurance companies that sell insurance to individuals are able to minimize the severity of the adverse selection problem by


A) guaranteeing that all applicants receive coverage.
B) requiring a medical exam.
C) limiting the amounts that doctors are paid.
D) requiring patients to use a health maintenance organization (HMO) .
E) expediting payment of benefits.

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