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Which of the following BEST describes the insurance provided by residual market insurance programs?

Option 1: Insurance for high-risk individuals in the voluntary market
Option 2: Insurance for low-income individuals in the voluntary market
Option 3: Insurance for standard-risk individuals in the voluntary market
Option 4: Insurance for catastrophic events in the voluntary market

1 Answer

2 votes

Final answer:

Residual market insurance programs provide insurance for high-risk individuals in the voluntary market. Option 1.

Step-by-step explanation:

The insurance provided by residual market insurance programs can be best described as insurance for high-risk individuals in the voluntary market. Residual market insurance programs are designed to provide insurance coverage to individuals who are unable to obtain coverage through traditional insurance markets due to their higher risk profile. These programs offer options for auto insurance, property insurance, and other types of coverage, allowing high-risk individuals to access insurance protection.

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