Which One of the Following Statements, is Correct, with Regard to 'Anti-Selection'?
A)Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting Un-Ethical Agents.
B)Anti-Selection is the Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process.
C)Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up launching the Insurance Products, that are Not Suitable for the Prospective Policy- Holders.
D)Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting the Wrong Investment-Products, for deploying the Premiums, collected from the Policy-Holders.

Question

Quizplus · Accepted Answer

Anti-selection, also known as adverse selection, refers to the tendency of individuals who perceive themselves to be at higher risk of a certain event (such as illness or accident) to be more likely to purchase insurance. This can lead to a disproportionate number of high-risk individuals in an insurer's pool, potentially leading to losses for the insurer.

Which One of the Following Statements, Is Correct, with Regard