Coinsurance rate for policy c is 20 while coinsurance rate


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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Financial Management: Coinsurance rate for policy c is 20 while coinsurance rate
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