In Terms of Insurance,which of the Following Statements Is Explained

Question 109
Multiple Choice

In terms of insurance,which of the following statements is explained by adverse selection? A) A person with riskier characteristics tends to be more likely to buy insurance. B) A person who is more risk-averse tends to be more likely to buy insurance. C) Insurance companies charge risk-averse customers a higher premium, since they need more peace of mind. D) None of these statements is true.