Question: 1 8 The correct answeMultiple Answer 1 pointFor a coverage, the premium an insurance firm requires varies by the deductible and the limit the policyholder

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The correct answeMultiple Answer

1

pointFor a coverage, the premium an insurance firm requires varies by the deductible and the limit the policyholder chooses for the coverage. This creates a financial incentive among potential policyholders to self select the deductible

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limit combination that is best for their anticipated claim experience. The insurance firm does this in order to mitigate which of the following?Adverse selectionPricing discriminationMoral hazard

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