What Is the Necessary Condition(s)for Efficient Insurance Markets

question 18

Multiple Choice

What is the necessary condition(s) for efficient insurance markets?

• A)Large number of insurable events.
• B)Sufficient experience regarding events so that insurance companies can reliably estimate losses.
• C)The insurance must be relatively free of moral hazard.
• D)A and B are necessary conditions.
• E)All of the above are necessary conditions.

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Definitions:

Morphogenesis

The biological process that causes an organism to develop its shape.

Segments

Divided parts or sections of a structure or organism, which can have specialized functions and can be identified as individual units.

Genes

Units of heredity made up of DNA that code for the synthesis of specific proteins and determine the characteristics of an organism.

Induction Genes

Genes whose expression is either stimulated or repressed by external factors or signals.