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Coinsurance rate for Policy C is 20% while coinsurance rate for Policy D is 15%. Which of the these 2 will most likely provide a
Coinsurance rate for Policy C is 20% while coinsurance rate for Policy D is 15%. Which of the these 2 will most likely provide a LOWER moral hazard?
A. Policy C
B. Policy D
C. both will provide exactly the same level of moral hazard
D. different coinsurance rates do not affect moral hazard implications
E. none of the above
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