AHM-520 Exam Dumps | The following statements indicate the pricing policies of two health plans that operate in a particular

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Question 20/129

The following statements indicate the pricing policies of two health plans that operate in a particular market:
The Accent Health Plan consistently underprices its product
The Bolton Health Plan uses extremely strict underwriting practices for the small groups to which it markets its plan From the following answer choices, select the response that correctly indicates the most likely market effects of the pricing policies used by Accent and Bolton.

A. Accent = unprofitable business
Bolton = high acquisition rate

B. Accent = unprofitable business
Bolton = low acquisition rate

C. Accent = high profits
Bolton = high acquisition rate

D. Accent = high profits
Bolton = low acquisition rate

Correct Answer: B

Explanation/Reference:
36

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