Which of the following additions to an insurance contract will not act to reduce moral hazard?

Question

Quizplus · Accepted Answer

Age limitations do not act to reduce moral hazard, as they do not address the behavior or actions of the insured. Instead, age limitations limit who can be insured based on demographic characteristics. Co-payments, deductibles, and cost caps all act to reduce moral hazard by either increasing the out-of-pocket costs for the insured or limiting the total amount that can be claimed, which incentivizes the insured to act more responsibly and reduces the likelihood of false or exaggerated claims.

Which of the Following Additions to an Insurance Contract Will