(Solved):Women who have had Cesarean births may be denied coverage due to “pre-existing conditions.” Insurers who deny this coverage are trying to: A. prevent the moral hazard from higher-cost clients. B… View Answer…

 

Question

Women who have had Cesarean births may be denied coverage due to “pre-existing conditions.”

Insurers who deny this coverage are trying to:

A. prevent the moral hazard from higher-cost clients.

B. prevent adverse selection of higher-cost clients.

C. satisfy the preferences of those consumers who buy their insurance.

D. increase profits by enlarging the pool of potential buyers.

 

EXPERT ANSWER

B. prevent adverse selection of higher-cost clients

As per the case depicted above, those types of

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