Which of the Following Is an Example of Adverse Selection

question 11

Multiple Choice

Which of the following is an example of adverse selection?

• A)A homeowner with a large fire insurance policy allows the wiring in her house to deteriorate.
• B)A woman with a large life insurance policy takes up sky diving.
• C)Your brother-in-law borrows $20,000 from you to open a pizza parlor, but spends it gambling at the racetrack instead.
• D)A man with a bad heart condition buys a large life insurance policy.

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Definitions:

Data

Information, often in the form of facts or figures, collected together for reference or analysis.

Move Instruction

A programming command used in PLCs or computer languages to transfer data from one location to another.

Source Address

In networking, it refers to the unique address of the sender in a data packet or frame.

Destination Address

In networking, it refers to the address to which data packets are being sent.