Discuss the potential for adverse selection when insureds exercise the renewability or convertibility option in a term life insurance policy. Which is more likely to be affected by adverse selection.

Q: When a life insurance policy lapses, it: a. benefits the insured b. benefits neither the insurer nor…

A: When insured person fails to pay the premium on insurance than it is said that policy has lapsed and…

Q: Is disaster insurance unfair to insurance companies ? Explain your answer and provide an example.

A: Disaster Insurance The meaning of disaster insurance is is different from the life insurance which…

Q: Most life insurance riders are expensive. O True False

A: An insurance policy is purchased in order to receive coverage for damages or losses that might occur…

Q: It pertains to a risk management technique when acquiring a life insurance. * risk avoidance risk…

A: One of the risk management technique is Risk Transfer where one party transfer the risk to another.…

Q: Pros and cons of long-term care insurance.   Discuss the pros and cons of long-term-care insurance.…

A: Long term care insurance: Long term care insurance means  an insurance that pays those costs that…

Q: Which of the following stalements is required by Long- Term care insurers when referring lo…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: What is meant by the expression, “The policyholder gets the benefit of the doubt,” in connection…

A: All insurance policies favour the insured person if there is any doubt etc benefits of doubt is…

Q: Which is not a management practice for reducing the problems of adverse selection and moral hazard…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Insurance coverage has been shown to diminish the importance of time in the decision about how much…

A: Insurance coverage seems to be the degree of risk or responsibility that would be addressed by…

Q: Which is not an essential characteristic of an insurance contract? A. transfer of significant risk…

A: Answer is A. transfer of significant risk from the issuer to the policyholder Explanation is given…

Q: When it comes to postretirement healthcare benefits, what are the primary distinctions between them…

A: The answer:

Q: Which of the following is not an insurance management tool? Group of answer choices deductibles.…

A: Insurance management: Insurance Management is the administration of all insurance requirements, both…

Q: 11. Which of the following is NOT the features of investment-linked insurance? O A. The insured can…

A: A life insurance plan that combines investment and protection is referred to as an investment-linked…

Q: Which of the following is a type of captive formed to write most types of liability insurance…

A: A captive insurance firm is a special arrangement for insurance, which is a subsidiary insurer to…

Q: The ability to purchase and immediately assign life insurance policies increases the problems caused…

A: The problem of asymmetric information is common to all insurance markets. Adverse selection means…

Q: The Patient Protection and Affordable Care Act limits the extent to which insurers may consider age…

A: Insurance is an agreement between two parties in which one party (insurance company) agrees to…

Q: Explain the differences between a collision deductible and a health insurance deductible. In health…

A: Health insurance deductible refers to the amount paid by the insurer from his/her own resource…

Q: Can both moral hazard and adverse selection occur in the insurance market s the difference between…

A: The insurance industry is an important part of the overall financial industry. Insurance is bought…

Q: Who are front-line underwriters? What are premium volume and loss experience with the insurer? What…

A: Underwriters are the person who sell theshares on behalf of the firm. They are very useful for the…

Q: Which of the following statements is correct about perils in property insurance policies?

A: Insurance is a contract by which the insured party is protected against losses by the Insurer in…

Q: Briefly explain the following characteristics of long-term care insurance. Protection against…

A: In long-term care insurance plans there are many approaches to obtain inflation insurance cover. The…

Q: Why would an insured inflate claims and who are the ones to suffer for it?

A: Insurance can be defined as the contract that is signed by an insurer indemnifies another person…

Q: Can moral hazard in the market for insurance exist without adverse selection? Explain

A: Adverse selection refers to a situation in which sellers have information about a product's quality…

Q: Insuring clause in an Accident & Health policy states which of the following information? A. The…

A: There are different clause in the insurance policy that what is covered and what is not covered and…

Q: Which principles ensures that an insured does not profit by insuring with multiple insurers?

A: The Principles of Contribution ensures that an insurance that an insured does not profit by insuring…

Q: Indicate whether the statement is true, false, or unclear, and justify your answer.On average,…

A: Life insurance additionally presents a prepared market for testing the forecasts of the adverse…

Q: Which is Idemenity Plan and which is Managed Care Plan? Insureds create contract with an insurer…

A: Only managing the funds, not about financial planning. Financial planning also includes the steps…

Q: Name a peril that is often excluded from an home or auto insurance policy.  Why is the peril…

A: Peril means an event causing fire or theft or damage to assets like home, auto mobiles etc Peril…

Q: Disadvantages of Whole Life insurance include... Group of answer choices -More expensive than Term…

A: Whole life insurance guarantees payment of a stated benefit for the life of the insured person. It…

Q: How can moral hazard lead to more costly insurance premiums than one was expected?

A: Definition : Moral hazard : The risk of a person not entering into an agreement in good conscience…

Q: The _______________ problem is when customers who are most likely to have a claim against an…

A: In a business, an adverse selection occurs where the knowledge distribution between the buyer and…

Q: List the few factors you should consider when evaluating the benefits of health insurance .What are…

A: Unlike the process a few years ago, buying health insurance was similar to buying a train ticket.…

Q: One of the purposes that deductible are used in insurance policies is to O eliminate coverage for…

A: In insurance, deductibles are expenses that a person has to bear by him/herself before the benefits…

Q: Which of the following statements about life insurance is NOT accurate? a) permanent insurance puts…

A: Permanent life insurance is the insurance policy that covers the whole life whereas term life…

Q: Compare and contrast the early historical accounting for postretirement health care and life…

A: Historical cost accounting is an important technique that records assets on a statement of financial…

Q: Please give and explain the numerical example of adverse selection that arises in life insurance…

A: In Insurance adverse selection refers to situations in which an insurance company extends insurance…

Q: Which of Ike following statements is CORRECT about he Missialement of Age provision in a health…

A: The misstatement of age clause is the provision under the life insurance policy that clears the…

Q: Identify the differences between pensions and postretirement healthcare benefits.

A: Both pension funds and post retirement healthcare benefits accrue to an employee after his/her…