Insurance deductibles __________ the __________ problem of insurance coverage.
A)are meant to reduce; adverse selection
B)are meant to reduce; moral hazard
C)unintentionally worsen; adverse selection
D)unintentionally worsen; moral hazard

Question

Quizplus · Accepted Answer

Insurance deductibles are meant to reduce the moral hazard problem by making the insured party bear a portion of the loss, thereby encouraging them to act more cautiously.

Insurance Deductibles __________ the __________ Problem of Insurance Coverage

Insurance Deductibles the Problem of Insurance Coverage