In Terms of Insurance, Which of the Following Statements Is

question 51

Multiple Choice

In terms of insurance, which of the following statements is explained by adverse selection?

• A)A person with riskier characteristics tends to be more likely to buy insurance.
• B)A person who is more risk-averse tends to be more likely to buy insurance.
• C)Insurance companies charge risk-averse customers a higher premium, since they need more peace of mind.
• D)None of these are true.

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Strong feelings of fear or dread about potential future events or outcomes, often disproportionate to the actual threat.

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Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsivity.

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A psychiatric disorder manifesting in persistent feelings of sadness, hopelessness, and lack of interest or pleasure in nearly all activities.