Which of the Following Is a Result of Adverse Selection

question 34

Multiple Choice

Which of the following is a result of adverse selection?

• A)The insurer's financial results will be substantially improved.
• B)Persons most likely to have losses are also most likely to seek insurance at standard rates.
• C)It is unnecessary for the insurance company to use underwriting.
• D)Insurance can be written only by the federal government.

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Definitions:

Hardships

Difficult or adverse conditions and situations that individuals or groups may face, often impacting their wellbeing or standard of living.

Medical Technology

The use of technology and devices in the practice of medicine to diagnose, treat, and monitor diseases and conditions.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Respite Care

Temporary care provided to patients or clients, intended to give relief to their usual caregivers.