If the probability that one person will develop a health problem is greater than that of another person and if they buy insurance from the same provider, most likely the person with a higher probability will pay:
A) the same as the other person.
B) more than the person with the lower probability.
C) less than the person with the lower probability.
D) All people, regardless of probabilities, pay the same amount for insurance.

Question

Quizplus · Accepted Answer

Insurance premiums are typically based on risk assessment, so a person with a higher probability of developing a health problem is likely to pay more to cover the increased risk.

If the Probability That One Person Will Develop a Health