Ohio Insurance Laws and Regulations Practice Exam

Group dental plans limit annual benefits in order to minimize adverse selection, or the potential for only unhealthy individuals to enroll in the plan. Limiting benefits can deter those who are more likely to use the plan frequently, reducing overall costs for the insurer. Options A, B, and D are incorrect because operational costs, customer satisfaction, and claim disputes are not the main factor driving the decision to limit annual benefits. While these may be considerations, they are not the primary reason for this practice.