Why Is There Unequal Knowledge and Bargaining Power in the Insurance

question 38

Multiple Choice

Why is there unequal knowledge and bargaining power in the insurance transaction?

• A)the complexity of the insurance contract and the intangible nature of the product
• B)the insurance companies want to confuse consumers so it is difficult to make choices
• C)consumers do not receive the policy until months after the contract goes into effect
• D)there is no competition in the industry, therefore the consumer is stuck with inferior products

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