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If Insurers Charge Everyone the Same Premium Based on the Average

Question 15

Multiple Choice

If insurers charge everyone the same premium based on the average cost of insuring the entire group,_____.


A) the poor will drop out because the premiums are too high
B) the middle class individuals will drop out because they can self-insure
C) the healthiest individuals in the market will drop out
D) the sickest individuals in the market will drop out

Correct Answer:

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