Examlex
If a homebuyer shops around,she/he can probably avoid which of the following fees?
Adverse Selection
A situation where asymmetric information leads one party in a transaction to select undesirable risks without the other party's knowledge.
Deductible
The amount paid out of pocket by the policyholder before an insurance company pays a claim.
Co-payment
A fixed payment made by a patient for a covered service, under a health insurance plan, at the time the service is provided.
Adverse Selection
A situation where asymmetric information results in high-risk parties being more likely to engage in agreements than low-risk parties.
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