An indication that Insurance companies anticipate adverse selection is
A) they do not require a deductible
B) they classify clients into different risk types according to their claim history
C) they do not classify clients into different risk types according to pre-existing conditions
D) they do not require a co-payment
Correct Answer:
Verified
Q17: Individuals who face greater risks
A)are more likely
Q18: Most people buy insurance because they
A)are risk
Q19: A risk neutral individual
A)Values a lottery at
Q20: The following is not an example of
Q21: Scatterbrain Samantha often forgets to lock her
Q23: An indication that Insurance companies anticipate adverse
Q24: Scatterbrain Samantha often forgets to lock her
Q25: Which firm is not dealing with adverse
Q26: The "lemons" problem is that
A)cars of verifiable
Q27: Which is a screen against adverse selection
A)Insurance
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