As a Result, of Adverse Selection Problems in the Fire

question 31

Multiple Choice

As a result, of adverse selection problems in the fire insurance market, it is likely that over time

• A) fewer low-risk people will be insured.
• B) fewer high-risk people will be insured.
• C) fewer low-risk and high-risk people will be insured.
• D) more low-risk people will be insured.

---

Definitions:

Health Maintenance Organization

A type of health insurance plan that provides healthcare services through a network of providers for a monthly or annual fee.

State Regulations

Refers to laws and rules enacted by a state government that govern practices within that state, affecting areas such as business operations, employment, and public health.

Civil Rights Act

Landmark U.S. legislation, particularly the Civil Rights Act of 1964, that outlawed discrimination based on race, color, religion, sex, or national origin.

Legal Costs

Expenses associated with the legal process, including lawyer fees, court fees, and any settlements or judgments.