True or False. Explain your answer clearly.(15 Marks; 5 points each)

a) If an annuitant dies during the accumulation period of a life annuity policy, the insurance company will credit the annuitant's beneficiary the present value of the average potential future benefit annuity payments, regardless of the type of the life annuity concerned.

b) The waiting period requirements in health insurance mainly address the moral hazard problem.

c) Suppose the following describes your customers out-of-pocket medical expenses in a particular year: Covered medical expenses=$4000 Coinsurance requirement: 10 percent Out-of-pocket expenses=$1300 Your customer does not know the deductible of his medical insurance policy. He calculates with the above information and believe that the deductible is $800.