Why are health insurance premiums from the not-for-profit insurer necessarily greater than the actuarially fair premium?
a) Due to the administrative costs associated with managing a not-for-profit organization.
b) Because not-for-profit insurers are required to cover individuals regardless of their health status.
c) It ensures that surplus funds are reinvested back into the organization to improve services.
d) To offset the potential losses incurred from providing coverage to high-risk individuals.