Although They Have Never Been Charged with a DUI, Glen

question 25

Multiple Choice

Although they have never been charged with a DUI, Glen and Dale often drive while intoxicated and each made 3 claims for auto accidents in 2010. If Crown Insurance decides to raise the price of insurance coverage for all its policy holders to $3,000 per year to off-set the claims of this type of driver, then its attempt to counter

• A) the moral hazard problem will be satisfactorily addressed.
• B) adverse selection will cause the low-risk policy holders to cancel their policies.
• C) the moral hazard problem will cause the high-risk group to cancel their policies.
• D) the adverse selection will be satisfactorily addressed.

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Definitions:

Extreme Behavior

Actions or conduct that significantly deviate from the social norms and expectations of a particular society or community.

Conflict Perspective

A sociological approach that views societal relationships as defined by tension and struggle between groups.

Progress

The advancement or development towards an improved or more advanced condition, often considered in societal, technological, or cultural terms.

Symbolic Interactionism

A sociological perspective focusing on the symbolic meanings that people develop and rely upon in the process of social interaction.