Adverse Selection Can Occur If

question 30

Multiple Choice

Adverse selection can occur if:

• A)high-risk persons insure themselves more heavily than low-risk persons.
• B)high-risk persons claim coverage which cannot be borne by the insurers.
• C)high-risk persons do not conceal information from the insurer.
• D)high-risk persons make an effort to take less risk in the presence of an insurance cover.

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Definitions:

Employee Training

A program that aims to enhance the skills, knowledge, and performance of employees through learning activities.

Recruitment and Selection

Recruitment and Selection refer to the processes through which organizations identify, attract, screen, and hire candidates to fill job vacancies, ensuring the right fit between the job and the employee.

Company-Specific Human Capital

The unique knowledge, skills, and experience possessed by an organization's workforce that cannot easily be replicated by competitors.

Unique Culture

A distinctive set of customs, traditions, beliefs, and practices that characterize a specific group, organization, or society.