Which of the following is a reason that social insurance programs exist?
A) to compete with private insurance programs
B) to provide a base of economic security
C) to provide needs-tested benefits to low-income individuals
D) to reduce involvement of the government in insurance markets
Answer: B
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Abdul works with a product development team where managers can assess both individual and group performance. To motivate Abdul and his team to perform at their best, the organization should do which of the following?
-Pay everyone equally for all the goals accomplished -Only use group-based pay -Use individual-based pay -Use both individual-based and group-based pay
Jasmine phones her agent to obtain auto insurance. The agent binds coverage over the phone, and tells her she will have a $250 collision deductible
When the insurer issues the policy, the underwriter imposes a $1,000 deductible because of Jasmine's poor driving record, then mails her the policy. She does not read it or notice this change until she has an accident six months later. She then demands that the insurer only require a $250 deductible rather than a $1,000 deductible, since she did not approve this change. Which legal principle of insurance contracts would be the insurer's most convincing reason for refusing to honor the $250 deductible? A) Contract of adhesion B) Parol evidence rule C) Indemnity D) Utmost good faith