SOLUTION: from the perspective of insurance company health policies are set up in such a way a healthy person has a negative expected value and a sickly person a positive one. Right or Wron

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Question 586054: from the perspective of insurance company health policies are set up in such a way a healthy person has a negative expected value and a sickly person a positive one. Right or Wrong
Answer by stanbon(75887) About Me  (Show Source):
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from the perspective of insurance company health policies are set up in such a way a healthy person has a negative expected value and a sickly person a positive one. Right or Wrong
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Wrong
For the company the healthy person will pay for insurance
and not have claims resulting in a positive gain for the company.
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For the company the sickly person will pay for insurance
and will make claims resulting in a loss for the company.
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Cheers,
Stan H.