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.