Adverse Selection Is a Situation Where Customers Who Most Need

question 50

True/False

Adverse selection is a situation where customers who most need insurance are more likely to apply for insurance.

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Definitions:

Conditioned Response

The learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Preparedness

The state of being readily equipped or in a state of readiness to confront and deal with various situations or challenges.

Survival Value

The extent to which a trait or behavior increases an organism's chances of surviving and reproducing in its environment.

Latent Learning

Learning that occurs without any obvious reinforcement of the behavior or associations that are learned until there is a reason to demonstrate it.