What are some of the common devices that insurers/governments use to reduce moral hazard? Explain how these devices can reduce moral hazard. 2. The Akerlof model can be used to model the health insurance market. In this market, which party is analogous to car buyers? which party is analogous to car sellers? What would it mean for the health insurance market to unravel? 3. Long term disability (LTD) insurance policies cover workers who become disabled and can no longer perform their job functions. Workers who think they qualify as disabled can submit a claim to their employer for LTD payments to replace their lost wages