Question

How does insurance reduce social burden?

A. Insurance ensures that people don't have to pay high deductibles.
B. Insurance ensures that losses are not passed on to society.
C. Insurance ensures that lenders publicize rates and treat all
customers equally.
D. Insurance ensures that people are treated fairly in hiring and
employment decisions.

Answer 1

Insurance reduces social burden by ensuring that losses are not passed on to society. This is achieved through mandatory insurance requirements and cost-sharing mechanisms such as deductibles and copayments.

Step-by-step explanation:

Insurance reduces social burden by ensuring that losses are not passed on to society. When everyone is required to purchase insurance, insurance companies can set their prices based on an average for the market, which allows those with lower risks to subsidize those with higher risks. Additionally, insurance companies often implement cost-sharing mechanisms such as deductibles, copayments, and coinsurance, which require policyholders to pay a portion of the costs. This helps reduce moral hazard and prevents individuals from overusing insurance benefits.

Answer 2

B. Insurance ensures that losses are not passed on to society

Hope this helps :)