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In the case of insurance, adverse selection is the tendency of those in dangerous jobs or high-risk lifestyles to purchase products like life insurance. To fight adverse selection, insurance companies reduce exposure to large claims by limiting coverage or raising premiums.
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Adverse selection refers to a scenario where either the buyer or the seller has information about an aspect of product quality that the other party does not.
Engineer at Engineers India Limited Management Experience Payroll Baltimore United States
Adverse selection refers to the tendency of high-risk individuals obtaining insurance or when one negotiating party has valuable information
B. Tech from Delhi Technological University Electrical San Francisco United States
Adverse selection in health insurance is a case where sick people, who require greater health care coverage, purchase health insurance while Initiative: Outcome
Former Doctor at All India Institute of Medical Sciences Coding Mesa United States
Adverse selection explained Adverse selection occurs when there is asymmetric (unequal) information between buyers and sellers. This unequal information
Civil Engineering, Dr. B. R. Ambedkar National Institute of Technology, Jalandhar Information Security Louisville United States
Adverse selection refers to an insurance company have incorrect information when issuing a policy. Because of adverse selection, insurance rates can be