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.