To not to in the first place.
Option 1 Charge the highest premiums possible. Pay out the least possible. or
Option 3 Do what is best for the world even if it loses you money.
I'm sorry that I didn't offer an hybrid option for you to chose.
Just imagine that you bought an insurance policy and paid $350 every month for 60 years which would be $252,000 in premiums. Then you got extremely sick and the only way to save your life would be to have a $7,266,414.09 surgery. Option 3 might be your choice.
Just imagine that you invested $252,000 into the best health insurance company. You might want to chose Option 1 in that particular scenario.
The only problem is that most investors fit into the second scenario. Therefore Option 1 is the correct answer to this test. Use your brain and a calculator for a few minutes. You will probably come up with Option 1. That is what the majority of the posters are answering.
It probably isn't fair that I am giving away the correct answer but I think there will still be people that choose a moronic answer but most people aren't morons. That is pretty encouraging.