Which of the following represents the problem of adverse screening for a robustness insurance company?
Which of the following represents the problem of adverse selection for a health insurance company?
A. Insured relatives tend to behave more dangerously and take greater condition risks.
B. When insured people become ill, they hold difficulty paying insurance premiums.
C. People with unhealthy customs are more likely to sign up for health insurance than decent people
C. "Adverse selection" means that the general public likely to select (i.e. sign up for) it are those more likely to use it.
the other two, which could also be true, are not defined by this possession.
C
B. Sick people inevitability insurance the most, but if they are too sick to work, they cannot afford the premiums.
Answers: c. adverse selction means that mostly race who are high risk will try to get the policy and the low risk associates don't bother with it.
C is true
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