The tendency for people who expect to make claims to sign up for health insurance,and for people who do not expect to make claims not to sign up,is called

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Adverse selection occurs when a high-risk individual is more likely to apply for insurance than a low-risk individual. This leads to a disproportionate number of claims coming from the high-risk individuals, causing premiums to increase for everyone. In this case, people who expect to make claims (high-risk) are more likely to sign up for insurance, while those who do not (low-risk) are less likely to sign up.

The Tendency for People Who Expect to Make Claims to Sign