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.

---

Definitions:

Objectivity

Refers to the practice of being unbiased and neutral, basing conclusions solely on facts and evidence without allowing personal feelings, opinions, or prejudices to influence them.

Exploratory Research

An attempt to describe, understand, and develop theory about a social phenomenon in the absence of much previous research on the subject.

Sociologist

A social scientist who studies the development, structure, and functioning of human society.

Particular Method

A specific way or technique applied to accomplish a certain task or to tackle a certain problem.