_____ refers to the situation faced by an insurance plan whose costs steadily increase as worse risks migrate toward it and better risks migrate away.
A)Adverse selection
B)Lemons problem
C)Moral hazard
D)Death spiral

Question

Quizplus · Accepted Answer

Death spiral refers to the situation in which an insurance plan faces increasing costs due to a vicious cycle of worse risks migrating toward it and better risks migrating away. This can lead to an unsustainable situation for the insurance plan.

_____ Refers to the Situation Faced by an Insurance Plan