Dave and Eli are friends who live just outside of Boston, Massachusetts. Dave is older than Eli, and he just got his driver’s license. He is insured under his parents’ auto policy. Because he is an inexperienced driver, the extra premium his parents pay to cover him is high. Dave is also covered under his mother’s healthcare policy. Eli, by contrast, is not so fortunate. His father was recently laid off from his long-time job, and until he finds a new one that offers benefits, the family is temporarily without health insurance. It is a source of great anxiety to his father. Eli works part time and does not qualify for group insurance through his employer. Eli’s father considered buying individual insurance directly. But without a special group rate, the premiums came out to nearly $2,000 a month, a sum the family could not afford, especially with one person out of work. As a precaution against risking injury, Eli’s father asked that he give up playing on the football team. He reluctantly agreed. He also asked Eli just to “be extra careful” in general. What advantage does Dave’s family have in this scenario? Dave’s family has eliminated their risk of sports injury. Dave’s family is less likely to experience an auto accident. Dave’s family is less likely to experience a serious illness or accident. Dave’s family is financially protected in case of a serious illness or accident.