In order to reduce the undesirable effects of moral hazard, an insurance company can

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All of the statements associated with this question are correct. Introducing a deductible means that the insured party must pay a certain amount of the claim before the insurance company covers the rest. This reduces the chances of the insured party making frivolous or unnecessary claims. Classifying clients into different types according to their history means that the insurance company can charge different premiums to different clients, depending on their likelihood of making claims. Rejecting the renewal of policies of those people with really bad records means that the insurance company can avoid insuring high-risk clients who are likely to make large claims. All these measures help reduce the undesirable effects of moral hazard.

In Order to Reduce the Undesirable Effects of Moral Hazard