A Life Insurance Company Requires New Applicants to Have a Medical

question 302

Multiple Choice

A life insurance company requires new applicants to have a medical exam prior to writing the insurance policy. This requirement is an example of

• A)signaling.
• B)screening.
• C)moral hazard.
• D)adverse selection.

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Definitions:

Earn Income

The process of receiving money as payment for work performed, or from investments.

B2C Marketing

Business-to-Consumer marketing, which focuses on selling products and services directly to individual customers.

Place Element

One of the four Ps in the marketing mix, referring to the strategies and processes used to make the product or service available to the target customer.

Marketing Mix

A blend of several marketing elements—including product, price, place, and promotion—used to market and sell a product effectively.