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Jenny is worried because her 3-month-old isn't rolling over yet like her friends' baby.She asks you what to do.You say.
Adverse Selection
A situation in which one party in a transaction has more or better information than the other, leading to an imbalance that can result in market inefficiency or failure.
Insurance Premium
The amount of money an individual or organization pays for an insurance policy, providing coverage against specific risks over a defined period.
Expected Loss
a calculation used in finance and insurance to estimate the average financial loss or cost associated with an investment or insurance policy over a period.
Adverse Selection
A situation in which one party in a transaction has more information than the other, leading to an imbalance and potentially poor market outcomes, commonly seen in insurance markets.
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