A Safe Driver Who Drives Faster as a Result of Purchased

question 23

Multiple Choice

A safe driver who drives faster as a result of purchased collision car insurance would be an example of the ___________ problem.

• A) moral hazard
• B) adverse selection
• C) Texas hedge
• D) actuarial error

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Definitions:

Indirect Strategy

An approach in communication or planning that is not straightforward, employing more subtle or roundabout methods to achieve an objective.

Refuse Requests

The act of rejecting or declining requests or proposals in a polite and professional manner.

Buffer

In communication, a buffer is a neutral or positive statement used to soften the impact of negative information or to ease into a difficult topic.

Spotlight

A feature or attention focused intently on someone or something, highlighting them in a significant or prominent way.