Identify a product that you have consumed in the past couple of
months and explain what makes the product a public good, based on the
characteristics of a public good as defined in this week’s textbook readings.
In 2020, a leading insurance company started a policy that pays
policyholders a 5 percent rebate on their insurance premium in a year in which
the policyholders do not file an insurance claim. For example, a household with
an annual premium of $1,200 will get a $60 rebate check each year it does not
file a claim. Identify what problem(s) the insurance company is trying to solve
by introducing this policy.