Question

_______ in the insurance industry involves an applicant gaining insurance at a cost that is below their true level of risk.

A Reverse selection Correct Answer Incorrect Answer
B Adverse selection Correct Answer Incorrect Answer
C Consumer Selection Correct Answer Incorrect Answer
D Buyer Selection Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Adverse selection in the insurance industry involves an applicant gaining insurance at a cost that is below their true level of risk.

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