Verizon charges $132 annually for phone insurance. The phine's replacement cost is $750. If there is a $150 deductible (the amount you must pay out of pocket before the Insurance coverage starts), what annual probability of loss would cause the price of insurance to be actuarially fair? (Hint: Think about how the presence of a deductible modifies the loss to the insurance company) 0.12 0.20 0.22 0.25

Verizon charges $132 annually for phone insurance. The phine's replacement cost is $750. If there is a $150 deductible (the amount you must pay out of pocket before the Insurance coverage starts), what annual probability of loss would cause the price of insurance to be actuarially fair? (Hint: Think about how the presence of a deductible modifies the loss to the insurance company) 0.12 0.20 0.22 0.25

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter7: The Market For Health Insurance

Section: Chapter Questions

Problem 11QAP

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