Author Question: Which of the following is a result of adverse selection? A) The insurer's financial results will ... (Read 83 times)

K@ · **on:** Jul 11, 2018

Which of the following is a result of adverse selection?

A) The insurer's financial results will be substantially improved.
B) Persons most likely to have losses are also most likely to seek insurance at standard rates.
C) It is unnecessary for the insurance company to use underwriting.
D) Insurance can be written only by the federal government.

Question 2

The tendency for unhealthy people to seek life or health insurance at standard rates is an example of

A) moral hazard.
B) fundamental risk.
C) attitudinal hazard.
D) adverse selection.