A Consequence of Adverse Selection for the Insurance Market Is

question 86

Multiple Choice

A consequence of adverse selection for the insurance market is that:

• A)risk-seeking individuals typically pay higher premiums than risk-averse individuals.
• B)everyone ends up paying higher premiums.
• C)risk-averse individuals typically pay higher premiums than risk-seeking individuals.
• D)everyone ends up paying lower premiums.

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Definitions:

Office Of Internal Governance

A designated office within an organization responsible for ensuring compliance with laws, regulations, and internal policies, often overseeing risk management and ethical conduct.

Organization Interest Principle

A principle emphasizing that the actions and decisions within an organization should prioritize the collective interests and goals of the organization.

Organizational Innovation Principle

An approach or set of guidelines intended to foster creativity, encourage the adoption of new ideas, and facilitate change within an organization.

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature.