Adverse Selection Occurs When

question 14

Multiple Choice

Adverse selection occurs when

• A) a person takes more risks that are not known to the life insurance company because he has life insurance.
• B) a person buys life insurance because he has a risky lifestyle that is not known to the life insurance company.
• C) a person is a risk lover.
• D) pregnant women with health insurance make more doctor visits than uninsured pregnant women.

---

Definitions:

Radioactive Waste

Waste material containing radioactive substances that can pose significant health and environmental risks if not properly managed.

Fuel Pellets

Pressed or agglomerated forms of fuel made from biomass or coal, used for heating or power generation.

Synfuels

Synthetic fuels that are produced from coal, natural gas, or biomass through chemical processes, used as an alternative to traditional fossil fuels.

Chernobyl Nuclear Disaster

A catastrophic nuclear accident that occurred on April 26, 1986, at the Chernobyl Nuclear Power Plant in Ukraine, leading to widespread radioactive contamination.