Medical histories used by insurance firms allow them to
A) identify high-risk people, so they can be denied insurance and premiums kept down for low risk people.
B) increase the number of policies issued, raising premiums as a result.
C) increase the number of policies issued, lowering premiums as a result.
D) lower the number of policies issued, raising premiums.
E) increase market power in the insurance industry, raising premiums.
ANSWER
A
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