Question

Can children take insurance for their parents?

a.

Yes, it is allowed

b.

No, it is not allowed and is considered a moral hazard

c.

It depends on the insurance company

d.

None of the above

Answer: (b).No, it is not allowed and is considered a moral hazard Explanation:Parents can take insurance for their children, but children buying insurance cover (except pension plans) for their parents are not allowed and is taken as a moral hazard.

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Q. Can children take insurance for their parents?

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