In Reality,market Imperfections Exist That Can Raise the Cost of Insurance

question 5

Multiple Choice

In reality,market imperfections exist that can raise the cost of insurance above the actuarially fair price and offset some of these benefits.These insurance market imperfections include all of the following EXCEPT:

• A)adverse selection.
• B)agency costs.
• C)administrative and overhead costs.
• D)taxation of insurance payments.

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Definitions:

Cable

A medium used for the transmission of television signals, internet communication, and power.

Coaxial Cable

Insulated copper wire; used to carry high-speed data traffic and television signals.

Cable

A medium used for transmitting electrical power or signals, consisting of one or more wires enclosed in a protective sheath.

DSL

Stands for Digital Subscriber Line, a technology for bringing high-bandwidth information to homes and small businesses over ordinary copper telephone lines.