The higher the insurance coverage,the ________ the policyholder can gain from risky activities that make an insurance payoff ________ likely.

Question

Quizplus · Accepted Answer

The higher the insurance coverage, the more the policyholder can gain from risky activities because they have a larger safety net to fall back on in case of a loss. This, in turn, makes an insurance payoff more likely as the policyholder is willing to take on more risk. Therefore, the correct answer is (B) more; more.

The Higher the Insurance Coverage,the ________ the Policyholder Can Gain