Question

should insurance companies be required to take anybody into the risk pool? What happens if all insurance companies refuse to insure a certain person who is higher risk- such as someone working a dangerous occupation.

Answer 1

Answer:

A health insurance risk pool is a group of individuals whose medical costs are combined to calculate premiums. Pooling risks. together allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category. Risk pooling is also known as health insurance, which is a group of persons contributing to a common pool, usually held by a third party. These funds are used to pay for all or part of the cost of providing a defined set of health services for members of the pool. A risk pool is one of the forms of risk management mostly practiced by insurance companies. Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophic risks such as floods or earthquakes.

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