An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they do not classify clients into different risk types according to pre-existing conditions
d. they require a co-payment
d
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Which of the following statements is not correct?
A. An increase in a nation's labor supply will cause its potential output to increase B. Economic growth can be illustrated by an expansion of a nation's production possibilities curve C. An increase in the quantity of a nation's resources will cause economic growth, but an increase in the quality of resources will not D. New technologies or new ways of producing output can cause a nation's production possibilities curve to shift outwards
Opportunity wage refers to the
A. Income an individual loses when he or she quits a job. B. Value of goods and services that could be purchased with a certain individual's income. C. Highest wage an individual would earn in his or her best alternative job. D. Income equivalent of a volunteer worker.