ABC Health Insurance Company sells health insurance in one state.Recently,that state's legislature passed a law forbidding health insurers from considering an individual's health history when selecting applicants to insure.This change in law will increase the possibility of unprofitable results for ABC.This type of hazard is an example of

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This is an example of a legal hazard, as the change in law has created a risk for the health insurance company in terms of profitability. The company may now have to insure individuals with potentially costly health histories, which could lead to financial losses.

ABC Health Insurance Company Sells Health Insurance in One State