Which of the following is not related to adverse selection in insurance markets?

Question

Quizplus · Accepted Answer

This statement is related to moral hazard rather than adverse selection. Adverse selection refers to situations where individuals with a higher risk of loss are more likely to purchase insurance, while those with a lower risk of loss are less likely to do so. This can lead to a "pool" of insureds that is relatively high-risk, which in turn can cause premiums to increase. The other choices listed are all related to adverse selection.

Which of the Following Is Not Related to Adverse Selection