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,the person with a higher probability will MOST likely pay:
A)the same as the other person.
B)more than will the person with the lower probability.
C)less than will the person with the lower probability.
D)All people,regardless of probabilities,pay the same amount for insurance.

Question

Quizplus · Accepted Answer

The person with a higher probability of developing a health problem will most likely pay more than the person with a lower probability because they are considered a higher risk for the insurance provider. The provider will need to collect more money in premiums to offset the potential cost of covering their medical expenses.

If the Probability That One Person Will Develop a Health