Requiring Applicants for Life Insurance to Undergo a Physical Examination

question 13

Multiple Choice

Requiring applicants for life insurance to undergo a physical examination is an effective way to:

• A) reduce moral hazard.
• B) increase information asymmetry.
• C) reduce adverse selection.
• D) increase sales.
• E) none of the above.

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Definitions:

Asexual

An individual who does not experience sexual attraction to others.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attraction to individuals of the opposite sex, same sex, both sexes, or more, including identities such as heterosexual, homosexual, bisexual, and others.

Heterosexual

Describes an individual who is emotionally, romantically, or sexually attracted to members of the opposite gender.

Gay

Referring to a person who is emotionally, romantically, or sexually attracted to members of the same gender.