Insurance companies in general must guard against having a disproportionate number of bad risks as policyholders. For their own profitability, they need to see the total payouts for a year as a fairly small percentage of the total premiums. This fundamental problem for insurance companies is known as
a.inflation risk.
b.co-insurance.
c.adverse selection.
d.deductible risk.
e.rate of return risk.
1.I am insurance that provides for living and illnesses generally associated with nearing end-of-life, which frequently have my policyholders being in assisted living or a nursing home. Who am I?
a.term life insurance
b.long-term care insurance
c.Medicare
d.managed care health plan
e.whole life insurance
