A health insurance company may offer its policyholders a discount on their premiums if they prove that they have stopped smoking.What type of incentive is the health insurance company offering?

Question

Quizplus · Accepted Answer

The health insurance company is directly incentivizing its policyholders by offering them a discount on premiums if they can demonstrate that they have stopped smoking. This is a clear and direct incentive for people to quit smoking, as it directly benefits them financially.

A Health Insurance Company May Offer Its Policyholders a Discount