Adverse Selection Refers to the Idea That Insurance Is

question 69

Multiple Choice

Adverse selection refers to the idea that insurance is

• A) frequently purchased by those who cannot pay for it.
• B) purchased by those least likely to file a claim.
• C) only a good deal if a claim is never filed.
• D) more frequently purchased by those most likely to make a claim.
• E) only a good deal if a claim is filed.

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Definitions:

Income Taxes

Taxes levied by the government on individuals or entities based on their net income or profit.

Necessary Deductions

Expenses or amounts that are required to be subtracted from income, often for the purpose of calculating taxable income.

Printer Units

Devices that produce hard copy outputs from digital data.

Cartons

Packaging containers often made from cardboard or light plastic, designed to hold goods during transport and storage.