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The Health Maintenance Organization (HMO) Model Act, developed by the National Association of Insurance Commissioners (NAIC), represents one approach to developing solvency standards. One drawback to this type of solvency regulation is that it
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C. Fails to adjust the solvency requirement to account for the size of an HMO's premiums and expenditures
D. Uses estimates of future expenditures and premium income to estimate future risk
Answer: B
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