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:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant changes in agriculture, manufacturing, mining, transport, and technology.

Midlife Crisis

A period of emotional turmoil and identity questioning that can occur in middle adulthood, often associated with reevaluating one's life achievements, goals, and relationships.

Middle Adulthood

A stage of life typically defined by ages 40 to 65, characterized by increased personal and professional responsibilities, stability, and reflection.

Development Theories

Frameworks that explain the physical, cognitive, and social changes that occur throughout different stages of human life.