In Insurance Terms,what Does Adverse Selection Refer To? (Cost Advantage)

question 22

Multiple Choice

In insurance terms,what does adverse selection refer to? (Cost Advantage)

• A)When employees choose an insurance plan they don't like,but are stuck with it for a year
• B)When insurance companies use medical underwriting to choose who to insure
• C)When employees are forced to choose between what they think are two inferior insurance programs
• D)The tendency of an insurance pool to disproportionately attract "bad risk" employees and discourage "good risk" employees

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Definitions:

Metabolism

The chemical processes that occur within a living organism in order to maintain life, involving the conversion of food into energy.

Monozygotic Twins

Twins derived from a single fertilized egg, resulting in genetically identical offspring, also known as identical twins.

Dizygotic Twins

Also known as fraternal twins, they are siblings born at the same time who have developed from two different eggs fertilized by two different sperm.

Pubertal Onset

The beginning stage of puberty when the body starts showing physical changes indicating sexual maturation.