Multiple choice

In 1995 health insurance earned revenue of $2 million. The revenue from health insurance doubled by the year 2005, and is projected to double again by 2011.

Each of the following, if true, may explain the rise in revenue except

  1. There are many companies now that offer health insurance.

  2. More and more persons are buying health insurance.

  3. Compared to 1995, the average person has at least 2.42 times the number of policies today.

  4. Health insurance cover offers several other benefits.

  5. In an effort to maintain and/or gain clientele, most companies have slashed the premium on health insurance cover.
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

This is the only option which gives a reason for health insurance revenues to go down. The reduction in premiums will counterbalance accretion due to increase in sales.

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