The Silvan Insurance Company is considering issuing a new policy to cover medications specifically required by people with Type 1 Diabetes who suffer from diseases associated with Type 1 Diabetes. The cost of the policy must be low enough to make it affordable for the majority of Type 1 Diabetes sufferers. Therefore, the Silvan Company is concerned that the income from the policies would be inadequate to cover the cost of claims.
Which of the following strategies would be most likely to minimize the Silvan Company's losses on the policies?
A
Attracting Type 1 Diabetes patients who monitor their diets and are thus unlikely to suffer from diseases associated with Type 1 Diabetes.
B
Insuring only those individuals who have not suffered from any Type 1-related diseases since their diabetes onsets.
C
Covering more medications under the policy than are covered under other, less expensive policies.
D
Insuring only those individuals who were rejected by other companies for similar policies.
E
Insuring only those individuals who are wealthy enough to pay for the medications.
Which of the following strategies would be most likely to minimize the Silvan Company's losses on the policies?
A
Attracting Type 1 Diabetes patients who monitor their diets and are thus unlikely to suffer from diseases associated with Type 1 Diabetes.
B
Insuring only those individuals who have not suffered from any Type 1-related diseases since their diabetes onsets.
C
Covering more medications under the policy than are covered under other, less expensive policies.
D
Insuring only those individuals who were rejected by other companies for similar policies.
E
Insuring only those individuals who are wealthy enough to pay for the medications.
A SMALL TOWN GUY
