If medical insurers could use information contained in DNA to predict the likelihood of major medical illnesses, the most likely outcome is that:
A) there would be an adverse selection problem and average insurance rates would rise.
B) there would be an adverse selection problem and average insurance rates would fall.
C) the adverse selection problem would be decreased and average insurance rates would rise.
D) the adverse selection problem would be decreased and average insurance rates would fall.

Question

Quizplus · Accepted Answer

If insurers can predict illnesses using DNA, they can better assess risk, reducing adverse selection. This could lead to lower average insurance rates as insurers can more accurately price policies based on individual risk.

If Medical Insurers Could Use Information Contained in DNA to Predict