If medical insurers could use information contained in DNA to predict the likelihood of major medical illnesses, the most likely outcome is that:
A. there would be an adverse selection problem and average insurance rates would fall.
B. the adverse selection problem would be decreased and average insurance rates would fall.
C. the adverse selection problem would be decreased and average insurance rates would rise.
D. there would be an adverse selection problem and average insurance rates would rise.
Answer: B
You might also like to view...
Assume you pay a premium of $0.50/bu for a put option with a strike price of $4.00/bu and that the current futures price is $3.75/bu. Then, the option is:
A. In-the-money B. At-the-money C. Out-of-the-money D. None of the above
Refer to Scenario 1 . The student has already taken 9 exams. His 9th exam was a 65 and his 10th exam was higher than the 9th exam. What can we conclude has happened to his average?
What will be an ideal response?