Great benefit inc., a reputed private insurance company, launched a new health insurance scheme for life-saving surgeries about a year back. the company had set the premiums based on the assessment of its risk analysis team that only 2 percent of the people who buy private insurance would submit a claim each year. however, at the end of the first year, higher number of claims on this policy had a negative impact on the company's profits. which of the following, if true, would explain this outcome?
a. great benefit, like most health insurance companies, insisted on a 20 percent coinsurance. b.the cost of life-saving surgeries remained unchanged during the year. c.the country's government requires all citizens to be covered by private health insurance. d.great benefit limited coverage of pre-existing conditions, which are medical problems that the buyer already has before purchasing the insurance. e.great benefit set higher premiums than the competition, but covered a larger number of critical illnesses.