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18 September, 16:25

Which of the following is a problem that arises in a health insurance market?

There exists a fierce competition between the insurance providers.

There are a large number of buyers of various insurance programs.

A disproportionate number of high-risk individuals are attracted to buy insurance.

Only risk-averse individuals buy insurance.

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  1. 18 September, 20:08
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    Answer: The correct answer is "A disproportionate number of high-risk individuals are attracted to buy insurance.".

    Explanation: A disproportionate number of high-risk individuals are attracted to buy insurance is a problem that arises in a health insurance market. Due to the greater risk, many insurers choose not to allow these individuals to hire these policies, and those that do offer these products do so with a higher premium than others.
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