Adverse Selection in Auto Insurance Might Refer To

question 34

Multiple Choice

Adverse selection in auto insurance might refer to:

• A)an auto owner failing to maintain the car, increasing the likelihood of an accident.
• B)an insured party driving faster than an uninsured party.
• C)an applicant lying on their application form about their health history.
• D)an insured driver using the car to conduct driving lessons for new learners.

---

Definitions:

Chapter 11 Bankruptcy

A form of bankruptcy that involves the reorganization of a debtor's business affairs, debts, and assets, allowing the business to continue its operation.

Apparent Authority

An accountability doctrine whereby a principal, by virtue of words or actions, leads a third party to believe that an agent has authority but no such authority was intended. Also called ostensible authority and agency by estoppel.

Agency by Estoppel

A situation where a person is prevented by their own actions from denying or negating the existence of an agency relationship.

Cocktail Party

A social gathering where guests enjoy alcoholic beverages and light refreshments, typically standing and mingling.