A health insurance company may offer its policyholders a discount on their premiums if they prove that they have stopped smoking. What type of incentive is the health insurance company offering?

Question

Quizplus · Accepted Answer

The discount on premiums for stopping smoking is a direct incentive, as it directly encourages policyholders to change their behavior (stop smoking) by offering a financial benefit.

A Health Insurance Company May Offer Its Policyholders a Discount