The potential for adverse selection can be greater with supplemental benefits than with nonsupplemental benefits.

Name: The potential for adverse selection can be greater with supplemental benefits than with nonsupplemental benefits.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

Supplemental benefits are optional and often chosen by individuals who anticipate a higher likelihood of using them, leading to a greater risk of adverse selection compared to mandatory or nonsupplemental benefits, where the risk is spread across a broader population.

The Potential for Adverse Selection Can Be Greater with Supplemental