Question

Lucy is applying for an individual health insurance policy and discloses that she is diabetic, which is considered which of the following?

A. a moral hazard

B. a critical hazard

C. a physical hazard

D. a morale hazard

Answer 1

C. a physical hazard

Step-by-step explanation:

Individual health insurance policy refers to the insurance policy that protects individuals against medical expenses due to serious disease, illness, or accident. Hospital bills can extract life savings, however premium of insurance plans reduced the immediate burden from the insurer. A physical hazard is a physical trait, and as per the question, it refers to diabetes, treatment of which came under the insurance policy.