Q.

Adverse selection occurs when

A. a person takes more risks that are not known to the life insurance company because he has life insurance.
B. a person buys life insurance because he has a risky lifestyle that is not known to the life insurance company.
C. a person is a risk lover.
D. pregnant women with health insurance make more doctor visits than uninsured pregnant women.
Answer» B. a person buys life insurance because he has a risky lifestyle that is not known to the life insurance company.
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