Insurance companies try to avoid adverse selection and moral hazard problems through all of the following methods except one.Which is the exception?

Question

Quizplus · Accepted Answer

Setting uniform premiums for all policies does not address adverse selection or moral hazard as it does not take into account the varying risks and behaviors of individuals. The other options - offering group policies, requiring lengthy application forms, requiring physical examinations, and requiring policyholders to pay a deductible - are all methods used by insurance companies to mitigate adverse selection and moral hazard problems.

Insurance Companies Try to Avoid Adverse Selection and Moral Hazard