If the probability that a person will develop a health problem is greater than that of another person living in the same community and both buy insurance from the same provider, most likely the person with a higher probability will pay:
A)the same as the other person.
B)more than the person with the lower probability.
C)less than the person with the lower probability.
D)All people, regardless of probabilities, pay the same amount for insurance.

Question

Quizplus · Accepted Answer

The person with a higher probability of developing a health problem is considered more of a risk to the insurance provider, so they will most likely have to pay a higher premium than the other person with a lower probability. This way, the insurance company can make up for the higher risk they are taking by providing coverage for the person with the higher probability.

If the Probability That a Person Will Develop a Health