Adverse Selection in Auto Insurance Might Refer To

question 34

Multiple Choice

Adverse selection in auto insurance might refer to:

• A)an auto owner failing to maintain the car, increasing the likelihood of an accident.
• B)an insured party driving faster than an uninsured party.
• C)an applicant lying on their application form about their health history.
• D)an insured driver using the car to conduct driving lessons for new learners.

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Definitions:

Peripheral Route

A path of persuasion that involves a respondent's passive engagement, where attitudes or decisions are influenced by superficial cues rather than deep processing of information.

Central Route

A method of persuasion that involves deeply processing the content of a message, considering its arguments and evidence.

Sufficiency Threshold

Sufficiency threshold refers to the minimum level of resources, information, or inputs required to achieve a satisfactory outcome or make a decision.

Systematic Processing

A mode of information processing that involves careful and thoughtful consideration of all available information and evidence.