The idea that insurance is purchased more frequently by those who are more costly for companies to insure is called

Question

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Adverse selection is the idea that those who are more likely to have a higher risk of loss or damage are also more likely to purchase insurance. This can create problems for insurance companies, who may end up covering a disproportionate number of high-risk individuals and paying out more in claims than they collect in premiums.

The Idea That Insurance Is Purchased More Frequently by Those