Adverse Selection Describes a Situation in Which

question 73

Multiple Choice

Adverse selection describes a situation in which:

• A)the buyers of insurance consistently make the wrong decision and buy too much insurance.
• B)insurance companies find most of their customers coming from high risk groups.
• C)insurance companies find most of their customers coming from low risk groups.
• D)the buyers of insurance can reduce the probability of occurrence of the risky event against which they are insured.

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Definitions:

Urine Testing

A diagnostic analysis of urine samples to detect substances or cells that indicate various states of health or disease.

Ketonuria

The presence of ketone bodies in the urine, often a sign of insufficient insulin in individuals with diabetes.

Diabetes

A metabolic disease characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin production, insulin action, or both.

Daily Injections

The routine of administering drugs or other substances into the body via a needle and syringe on a daily basis.