Insurance for Large Risks That Cannot Be Well Diversified Has

question 34

Multiple Choice

Insurance for large risks that cannot be well diversified has a(n) ________, which increases its cost.

• A) positive beta
• B) moral hazard clause
• C) negative beta
• D) actuarially-biased risk

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Definitions:

Penetrance

In genetics, the proportion of people with a given genetic endowment that actually express the effects of this endowment.

Meiosis

A type of cell division that reduces the chromosome number by half, creating four haploid cells, each genetically distinct from the parent cell that gave rise to them.

Gene Dominance

A phenomenon in genetics where one allele masks the expression of another allele in determining phenotypic traits.

Condition Passed

The state of having moved beyond a particular condition, problem, or stage, often implying improvement or resolution.