In a world without underwriting,insurance would become __________ because of _____________.
A)unfeasible; adverse selection
B)unfeasible; homogeneity of exposures
C)inexpensive; adverse selection
D)prohibitively expensive; moral hazard

Question

Quizplus · Accepted Answer

Without underwriting, insurance companies would not be able to assess the risk profile of potential policyholders. This would lead to adverse selection, where individuals with a higher probability of making claims would be more likely to purchase insurance than those with a lower probability. As a result, insurance companies would have to charge higher premiums to cover the higher expected losses, making insurance unfeasible for many people.

In a World Without Underwriting,insurance Would Become __________ Because of _____________

In a World Without Underwriting,insurance Would Become Because of ___