1. What are risk aversion and the risk premium. How are they related and how does they affect the demand for insurance (how much people are willing to pay)?
2. What is load fee for insurance and how does it vary with the type of customer?

3. What is the major reason why health insurance policies have deductibles and copays? Explain.

4.What is adverse selection and what do insurance companies do to avoid it?

5.Why do most Americans buy their insurance through their employers (briefly give at least 2 reasons)?