FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An insurance company has identified the following risk groups and their expected costs for health insurance.How should you price insurance if you can discriminate? What

An insurance company has identified the following risk groups and their expected costs for health insurance.How should you price insurance if you can discriminate? What the price of insurance if you cannot discriminate? Why does the Australian Government explicitly outlaw discrimination in health insurance markets?

GroupCost of ClaimsProbability of filing ClaimSmokers$50050%Non-smokers$40010%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Microeconomics 3e By OpenStax

Principles Of Microeconomics 3e By OpenStax

Authors: OpenStax

3rd Edition

1711471496, 978-1711471495

More Books

Students also viewed these Economics questions

Question

★★★★★
Should companies be allowed to test employees for drugs? Explain. How should a socially responsible drug testing program operate?

Answered: 1 week ago

Question

★★★★★
A company reports the following information for its direct labor. AH= Actual Hours SH= Standard Hours AR=Actual Rate SR=StandardRate Compute the direct labor rate and efficiency variances and...

Answered: 1 week ago

Question

★★★★★
1.. If you were explaining your current university or researching the degree program you are now in, what could you learn from blogs and any other online WOM you can find? How would that information...

Answered: 1 week ago

Question

★★★★★
Life-cycle costing. Maximum Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an old industrial site. The current owners of the site will sign over...

Answered: 1 week ago

Question

★★★★★
An insurance company has identified the following risk groups and their expected costs for health insurance.How should you price insurance if you can discriminate? What the price of insurance if you...

Answered: 1 week ago

Question

★★★★★
Patrick has started a sole trader business, Fire & Smoke. Patrick holds a NSW State permit to sell fireworks. As there are only a limited number of permits, the business has been going very well. It...

Answered: 1 week ago

Question

★★★★★
Employee Demographics Company A has 4 0 employees: 3 0 work in Sales, the rest in Customer Service. Company B has 3 6 employees: 1 8 work in Customer Service, the rest in Sales. Question Arrange the...

Answered: 1 week ago

Question

★★★★★
Renovation Nation Pty Ltd (Company) sold bathroom and kitchen products. Due to financial difficulties Tristan, an administrator, has been appointed to take control of the company. At the time of his...

Answered: 1 week ago

Question

★★★★★
Suppose Tim is a single full time worker, earning $75000 per year. He has a government bonds which return $1300 a month. He rents his apartment for $210 a week, with a monthly electricity bill of...

Answered: 1 week ago

Question

★★★★★
Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,000 shares of Pamrods $20 par value common stock. Balance sheet data for both...

Answered: 1 week ago

Question

★★★★★
Carol is the purchasing manager for J'Divine, a popular wedding photography business. She is responsible for assessing the purchasing and supply activities performed by J'Divine's purchasing and...

Answered: 1 week ago

Question

★★★★★
4. Erik wants to save more, but whenever a paycheck arrives, he ends up spending everything. One way to help him overcome this tendency would be to: LO8.4 a. Teach him about time inconsistency. b....

Answered: 1 week ago

Question

★★★★★
3. Label each of the following behaviors with the correct bias or heuristic. LO8.3 a. Your uncle says that he knew all along that the stock market was going to crash in 2008. b. When Fred does well...

Answered: 1 week ago

Question

★★★★★
2. Identify each statement as being associated with neoclassical economics or behavioral economics. LO8.1 a. People are eager and accurate calculators. b. People are often selfless and generous. c....

Answered: 1 week ago

Previous Question Next Question