An Auto-Insurance Company Introduces an Anti-Theft Device That Records How

question 81

Multiple Choice

An auto-insurance company introduces an anti-theft device that records how well the customer has secured his car.If the driver locks his car with the monitored lock every day,the rates go down.The company is trying to solve a __________problem

• A)​Adverse selection
• B)Moral hazard
• C)Forced bankruptcy
• D)​None of the above

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Definitions:

Rescind

To revoke, cancel, or repeal a law, order, or agreement.

Liability

The state of being legally responsible for something, typically referring to financial obligations or debts.

Breach Of Contract

Occurs when one party fails to fulfill their obligations under a contract, allowing the other party to seek legal remedies.

United States Postal Service

The federal agency that provides postal and mail services in the United States, overseeing the delivery and collection of mail and parcels.