Vidyalelo
Commerce · Q629

Insurance

Graduate and Post Graduate · Commerce · question 629

Q629

Which is correct

A.
It may lead to community rating
B.
It may lead to abuse of health insurance cover
C.
Moral Hazard in health insurance would mean adverse selection
Answer
D.
Risk pooling will be there in moral hazard

Answer: Option C

Solution

Answer: Option C
Solution:
Moral Hazard in health insurance would mean adverse selection. Moral hazard occurs when there is asymmetric information between two parties and a change in the behavior of one party after a deal is struck.