Adverse Selection Occurs When a Fully Insured Person Fails to Take

question 104

True/False

Adverse selection occurs when a fully insured person fails to take as many precautions against risk as she would if uninsured.

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Definitions:

Live Alone

The act or state of residing in a dwelling by oneself without cohabitants.

Majority

The greater part or number; often used to denote the age at which a person gains full legal rights and responsibilities.

White

A racial classification often used to refer to people of European origin, but can also denote purity or absence of color in different contexts.

Marriage Squeeze

A demographic imbalance in which the number of potential brides does not approximately equal the number of potential grooms within a certain population.