An individual will never buy complete insurance if
A)he or she is risk averse.
B)he or she is a risk taker.
C)insurance premiums are fair.
D)under any circumstances.

Question

Quizplus · Accepted Answer

An individual who is a risk taker may not see the value in purchasing complete insurance if they feel like they would rather take risks and potentially save money on premiums. However, for those who are risk averse, the cost of potential loss outweighs the cost of paying for insurance premiums, so they are more likely to buy complete insurance.

An Individual Will Never Buy Complete Insurance If