Match each term with the correct definition. Note: there are more terms than definitions. I.e. some terms do not have matching definitions. Question 1 options: A premium that accurately reflects a person’s outcomes and probabilities Where a person may be willing to pay a higher amount of cost that the actuarially fair premium Annual amount you have to pay out of pocket before insurance kicks in Your behavior becomes more risky once you have covered by insurance Buying into an insurance plan that does not reflect your level of risk The additional cost included in a premium that covers the insurer’s administration costs, taxes, and profits Percentage you pay for a good or service Flat fee paid out of pocket for a good or service 1. Risk aversion 2. Deductible 3. Coinsurance 4. Moral hazard 5. Adverse selection 6. Insurance death spiral 7. Actuarially Fair Premium 8. Loading fee 9. Coinsurance 10. Copay 11. Recission 12. Pre-existing condition 13. Individual mandate