A motorist choosing a high-deductible plan is an example of:
A)screening.
B)signaling.
C)statistical discrimination.
D)building a reputation.

Name: A motorist choosing a high-deductible plan is an example of: A)screening. B)signaling. C)statistical discrimination. D)building a reputation.
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Question

Quizplus · Accepted Answer

Choosing a high-deductible plan is an example of signaling, where the motorist indicates to the insurer that they are a low-risk individual, as they are willing to bear more risk themselves.

A Motorist Choosing a High-Deductible Plan Is an Example Of