Final answer:
High-risk exposure levels may render individuals ineligible for insurance due to adverse selection, where those at greater risk seek coverage, thereby straining the insurance system. Insurance companies assess risk factors like family history of cancer and rates of mortality, as well as long-term effects of exposure to hazardous factors like radiation, to determine insurability and premiums.
Step-by-step explanation:
Risks with an exposure level of high may not be eligible for insurance. In the context of health insurance, exposure refers to the potential of an individual to encounter a risk that could lead to a health event. For instance, if a calculated value is more than one, indicating an increased risk related to exposure to a certain factor. In a scenario where the exposed group were 3.25 times more likely to have the health event than the non-exposed group, the risk level is higher, and consequently, such individuals might face challenges in obtaining insurance coverage. This high risk is often due to adverse selection, where individuals with inherently higher risks than the average seek out insurance, thus potentially straining the insurance system. Additionally, individuals experiencing high healthcare costs, which are not adequately covered by insurance, might be considered underinsured, posing a risk for insurance companies. Insurance companies assess the risk by examining factors such as family history and the likelihood of a claim. For example, 50-year-old men with a family history of cancer have a higher mortality rate within a year compared to those without such history, affecting their insurability. Regarding radiation exposure, doses over 1 Sv are categorized as high doses, with long-term effects like cancer deaths at a rate of 10 per 100 rem years and genetic defects at about one-third of this rate. The risk persists over a long period, with a lifetime risk from a dose of 1 rem (0.01 Sv) being roughly 300 in a million or 0.03 percent. These percentages are vital for insurance companies when deciding on insurability and premiums.