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:

Critical Link

A crucial connection or point within a network, system, or process that significantly influences outcomes or functionality.

Social Selling

The use of online, mobile, and social media to engage customers, build strong customer relationships, and increase sales.

Adaptive Selling

The altering of sales behavior during a customer interaction based on perceived information about the selling situation.

Predictive Analysis

The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data.