An agent who buys high-priced insurance is most likely

Question

Quizplus · Accepted Answer

If an agent is willing to pay a higher price for insurance, it suggests they are willing to sacrifice some amount of money for the peace of mind that insurance provides. This behavior is typical of risk-averse individuals who would rather pay more to transfer the risk to someone else instead of bearing it themselves. A risk-neutral or a risk-preferring person would not be willing to pay a higher premium for the same coverage.

An Agent Who Buys High-Priced Insurance Is Most Likely