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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Definitions:

Soviet Union

A Eurasian socialist nation that was in existence from 1922 to 1991, formally called the Union of Soviet Socialist Republics (USSR).

Red Army

The army and air force of the Russian Soviet Federative Socialist Republic and, after 1922, the Union of Soviet Socialist Republics.

Japan

An island nation in East Asia, known for its rich cultural heritage, technological advancements, and as a leading global economic powerhouse.

Revolutionary Nationalism

A political ideology that combines the desire for self-determination or independence with the transformation of society based on nationalist ideals.