A Good Way to Deal with Adverse Selection Faced by an Insurance

question 57

Multiple Choice

A good way to deal with adverse selection faced by an insurance company would not be to:

• A)fully indemnify its policy holders.
• B)require applicants to take a physical examination.
• C)require policy holders to pay a deductible.
• D)insure groups of individuals (such as all employees of a particular firm).

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Definitions:

Majority Support

The condition in which more than half of a group favors a proposal or action, often used in the context of union representation votes.

Opportunistic Organizing

A strategy where organizing efforts are swiftly mounted to capitalize on unforeseen events or situations.

NLRB

The National Labor Relations Board, an independent US federal agency tasked with enforcing US labor law in relation to collective bargaining and unfair labor practices.

Bargaining Unit

A team of employees, linked by shared interests, who are collectively represented by one labor organization in bargaining processes.