Insurers Want to Avoid _____, or Having Those with a High

question 6

Multiple Choice

Insurers want to avoid _____, or having those with a high probability of a claim joining their system in larger numbers.

• A) adverse selection
• B) moral hazard
• C) the free rider problem
• D) cost shifting

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Definitions:

Strategy Implementation

The execution of a strategic plan or the process of putting a newly chosen strategy into effect to achieve organizational goals.

Focused Cost Leadership

A strategy where a business aims to be the lowest cost producer in a specific niche or segment.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand reputation, and customer service.

Market Segment

A distinct group of customers within a broader market, defined by specific characteristics such as needs, preferences, or behaviors.