In the case of an insurance policy, ________ occurs when the existence of insurance encourages the insured party to take risks that increase the likelihood of an insurance payoff; ________ occurs when those most likely to get large insurance payoffs

are the ones who want to purchase insurance the most.
A) moral hazard; insurance market discrimination
B) moral hazard; insurance segregation
C) moral hazard; adverse selection
D) adverse selection; moral hazard

C

Business

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Which of the following financial statements reports an increase or decrease in net cash during the time period covered?

A) Income statement B) Statement of retained earnings C) Statement of cash flows D) Cash budget

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The account Budgetary Fund Balance can have either a debit or credit balance.

a. true b. false

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