Bill Purchases Property Insurance for His Office Building, Which Includes

question 70

Multiple Choice

Bill purchases property insurance for his office building, which includes coverage for fire damage. The policy offers premium discounts for smoke detectors, fire alarms, fire extinguishers and sprinkler systems. This is an incentive system to help avoid

• A) adverse selection.
• B) moral hazard.
• C) optimal-stopping.
• D) none of the above.

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Definitions:

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Early Maturing Boys

Boys who experience puberty earlier than the average age, which can have various psychological and social impacts.

Late-Maturing Boys

Boys who experience puberty and its associated growth spurts later than the average age for their gender.

Sports Skills

The specific abilities and techniques required to perform effectively in sports activities.