Final answer:
In Ohio, advertisements for accident and health insurance that mention dollar amount benefits must disclose any limitations or conditions as well. This requirement ensures consumers are informed about the coverage's true extent and combats imperfect information and moral hazard. Option d
Step-by-step explanation:
In Ohio, when there is an advertisement for accident and health insurance that refers to dollar amount benefits, it is mandatory for the advertisement to also disclose any limitations or conditions that may apply. This requirement helps to ensure that consumers are fully informed about what the insurance coverage entails and prevents them from being misled by the advertisements.
This requirement aligns with the concept of addressing imperfect information, as it ensures that individuals are better informed about the potential gaps between their expectations of benefits and what the insurance policy actually provides.
Additionally, the discussion of cost-sharing mechanisms such as deductibles, co-payments, and coinsurance is meant to address concerns about moral hazard, the situation where having insurance coverage might lead individuals to act less cautiously.
These cost-sharing measures serve as a way to have policyholders bear a portion of the cost, which can promote more responsible behavior and limit the overusage of healthcare services. Option d