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 is a positive question?
A) What are the returns to education? B) Can a monopoly ever be good for society? C) Is there value in putting yourself in someone else's shoes? D) Are companies like Nike exploiting workers in the developing world?
The rational expectations school advocates the passive rule of a fixed-growth rate monetary policy because:
a. policy makers often do not have enough information to pursue an active policy b. active intervention is required only if an economy is in recession. c. a large bureaucracy can be eliminated by following the passive approach. d. people render active policy ineffective by figuring out what it's going to be and taking actions to offset it. e. they prefer to emphasize on an active fiscal policy.