Abstract
This paper goes into great detail of describing the association of risks with insurance. We do not think that there could be risks associated with insurance but, there is. The next focus in the paper is to determine what types of ethical misconduct can be foreseen if the supply and demand of insurance was too much to handle. This paper gives opinion of whether or not a person’s income should be a consideration as to whether or not they should be insured. Driving factors for the basis of a consumer seeking insurance and how it compares to the empirical measurements were discussed in detail as well as how to measure the demand for insurance. Lastly, the paper breaks down the lemons principle in terms of how it applies to health care and where we are today.
Key words: insurance, health, supply, demand, insured

What is insurance without risk?

When we think of the term insurance the first though that comes to mind is something that we are given by our employers or others in the event that something should happen to us we are covered. One can say that insurance for consumers is almost the same as the insurance we purchase for our cars. The insurance covers us for medical procedures that might have to be incurred at the time of an accident. The proper description of insurance is that of the providing by a company to the consumer in the return of a premium or co-pay (Folland, Goodman, Stano, 2013). Insurance now has become more important to have than ever with all of the recent changes to the health care laws and what they can and cannot provide the consumers.
Now, let’s look at the term risk and its meaning to us and how this all relates back to the thought of insurance. A risk to me is the taking of actions without knowing if there could be a possible adverse reaction to the action. Basically taking a risks means that you are open to the unknown