aumd568 wrote:
AndrewN In my analysis I eliminated Option (D) using the following reasoning -
Option (D) kind of hurts the plan since the individuals who are rejected by other insurance firms are more likely to have some obvious red flags.
Do you think this was appropriate or this would be jumping the gun too much?
Although this is my first time asking you a question, I have gone through a lot of your replies and find them very helpful. Your replies really help a lot of students
-Aum
Hello, Aum. I do not think you are jumping to a hasty conclusion, even if, rather than supply a reason from real-life knowledge of the industry, I would probably stick with the notion that for whatever reason these individuals have been
rejected by other companies, the fact remains that selling policies exclusively to this group limits the number of people who can put money into the pool. If the objective is
to attract customers and
to pay for the claims that would be made, then the more customers, the better.
Thank you for the kind words. Good luck with your studies.
- Andrew
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