In Terms of Insurance,which of the Following Statements Is Explained

question 90

Multiple Choice

In terms of insurance,which of the following statements is explained by adverse selection?

• A)A person with riskier behavior tends to be more likely to buy insurance.
• B)A person who is more risk-averse tends to be more likely to buy insurance.
• C)Insurance companies charge risk-averse customers a higher premium,since they need more peace of mind.
• D)None of these statements is true.

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