In an Ad for Insurance, the Text Reads "Life's an Adventure

question 121

Multiple Choice

In an ad for insurance, the text reads "Life's an adventure, and there are plenty of perils awaiting your jewelry: a lost or broken stone, theft, accidental loss, damage, mysterious disappearance Have you thought about insurance?" How does the inclusion of accidental loss and mysterious disappearance create adverse selection?

• A) Those who seek this jewelry insurance know that tend to lose their jewelry often.
• B) Individuals who own jewelry know more about their risk than insurance company.
• C) Once insured, some individuals wear their jewelry swimming, exercising, etc. where there is an increased risk of loss.
• D) Individuals who purchase insurance are risk averse.

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Definitions:

Commitment

A state or quality of being dedicated to a cause, activity, or relationship, often implying a strong sense of loyalty and responsibility.

Moratorium

A suspension of activity or a period of deliberation and experimentation without immediate commitment, often related to identity exploration during adolescence.

White Privilege

Social and economic benefits that are automatically granted to individuals simply because they are members of the White majority.

Economic Benefits

The advantages gained from certain actions, decisions, or policies that lead to an improvement in financial standing or economic condition.