Clark's performance incentive is based entirely on the number of and dollar value of customer insurance claims he rejects.Clark will be motivated to reject as many claims as possible,regardless of the validity of the claim.

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Clark's performance incentive is solely based on the number and dollar value of rejected insurance claims, which means that he is encouraged to reject as many claims as possible, regardless of their validity. This can create a conflict of interest between Clark's personal gain and the best interest of the customers, who may have legitimate claims that should be approved. Therefore, Clark's performance incentive is likely to lead to an increase in claim rejections, even if they are legitimate and justified.

Clark's Performance Incentive Is Based Entirely on the Number of and Dollar