Which of the following is a result of adverse selection?
A) The insurer's financial results will be substantially improved.
B) Persons most likely to have losses are also most likely to seek insurance at standard rates.
C) It is unnecessary for the insurance company to use underwriting.
D) Insurance can be written only by the federal government.
Answer: B
You might also like to view...
Tony was so concerned that his department's project be completed on time that he offered all of his employees a $100 bonus for each day that the project was completed ahead of schedule. This is an example of
a. extinction. b. valence. c. variable reinforcement. d. positive reinforcement. e. extrinsic reward.
Which type of psychographic study places a large sample of respondents into homogeneous groups based on similarities of their overall preferences?
A) General lifestyle segmentation B) Lifestyle profile C) Product-specific segmentation D) Product-specific profile