Which of the Following Insurance Practices Attempts to Minimize the Adverse

question 23

Multiple Choice

Which of the following insurance practices attempts to minimize the adverse selection problem insurance companies face?

• A)prevention of fraud
• B)risk-based premiums
• C)restrictive provisions
• D)deductibles

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Definitions:

Retirees

Individuals who have withdrawn from active working life, often due to age, and are typically supported by pensions, savings, or benefits.

Physical Aspects

The tangible, measurable characteristics or properties of objects or systems.

Retirement

The period of one's life after permanently leaving one's occupation or workplace, often due to age.

Level of Satisfaction

A measure of how content an individual is with various aspects of their life, including job, relationships, and personal achievements.