Which of the Following Is a Result of Adverse Selection

question 34

Multiple Choice

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.

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