Which of the Following Would Be Considered an Example of Adverse

question 62

Multiple Choice

Which of the following would be considered an example of adverse selection?

• A) Malpractice insurance may increase the amount of malpractice.
• B) Drivers may be less cautious because they have airbags installed in a car.
• C) Those individuals who most need insurance are the ones most likely to buy it.
• D) Work contracts that give a set number of sick-days may encourage more workers to call in sick.

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Definitions:

Civil Law

A legal system originating in Europe, characterized by its focus on written statutes and codes as the primary source of law, rather than case law or precedent.

Federal Statutes

Federal statutes are laws enacted by the U.S. Congress that apply to the entire country, covering a broad range of subjects including criminal, civil, and regulatory matters.

State Constitutions

State constitutions are the supreme law within a U.S. state's territory, outlining the structure, functions, and powers of government institutions and the rights of citizens.

Social Control

The mechanisms, strategies, and institutions society uses to enforce norms and regulate behavior.