Travel insurance (which pays a traveler if the traveler needs to cancel his or her trip) has a clause that states it will not pay if the trip is cancelled because of a pre-existing condition. If sick people are more likely to purchase travel insurance, this clause is meant to

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The clause is meant to reduce adverse selection by discouraging those with pre-existing conditions, who are more likely to cancel, from purchasing insurance.

Travel Insurance (Which Pays a Traveler If the Traveler Needs