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Which of the Following Is True About Private Group Insurance

Question 59

Multiple Choice

Which of the following is true about private group insurance?


A) Individuals spread fixed costs over more people.
B) Insurance risks are pooled in small groups.
C) ERISA rules provide favorable tax treatment for large groups.
D) Individuals have more bargaining power when negotiating over prices.
E) Concern for employee security helps explain the prevalence of employer-sponsored insurance plans.

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