How Can an Insurance Company Reduce the Adverse Selection Problem

question 143

Multiple Choice

How can an insurance company reduce the adverse selection problem?

• A) The adverse selection problem can't be reduced.
• B) An easy insurance application process could be used,unhealthy individuals could be refused coverage,and large groups of individuals could be insured.
• C) An extensive insurance application process could be used,unhealthy individuals could be refused coverage,and only individuals would be insured.
• D) An extensive insurance application process could be used,hardly anyone would be refused coverage,and large groups of individuals could be insured.
• E) An extensive insurance application process could be used,unhealthy individuals would be refused coverage,and large groups of individuals could be insured.

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