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Automobile insurance companies attempt to reduce the problem of moral hazard by: a. By segmenting the market into low risk and high risk groups. b.

Automobile insurance companies attempt to reduce the problem of moral hazard by:

a. By segmenting the market into low risk and high risk groups.

b. Requiring a deductible on insurance claims.

C. Offering liability insurance to drivers with bad driving records, but refusing to offer collision insurance.

d. Refusing to insure bad drivers.

e. Offering no-fault insurance.

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