Adverse selection results in: a.Higher premiums for those with lower need b.Lower premiums for those with...

Adverse selection results in:

		a.Higher premiums for those with lower need
		b.Lower premiums for those with higher risks
		c.Higher premiums for those with undetermined risks
		d.Higher premiums for those with greater need

Expert Solution

Adverse selection results in:

b.Lower premiums for those with higher risks

In simple terms, Adverse selection is when high risk individuals purchase insurance at same premium that others are paying.

jeff jeffy answered 2 years ago

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