which option is resulting in a moral risk (dishonesty)? Policyholder’s history of prior losses in high-risk crime zones Policyholders lack of proper security measures to protect the insurer property from theft Policyholder’s criminal record involving crimes related to theft Policyholder’s lack of concern about protecting the insured property

which option is resulting in a moral risk (dishonesty)? Policyholder’s history of prior losses in high-risk crime zones Policyholders lack of proper security measures to protect the insurer property from theft Policyholder’s criminal record involving crimes related to theft Policyholder’s lack of concern about protecting the insured property

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Ex-ante risk (such as adverse selection) is greater than ex-post risk (such as moral hazard) True False
Help ASAP
The insured has failed to respond to recommendations to correct the elimination of existing hazards discovered during a recent inspection of the property by the insurer. The insurance company will not eliminate some of the coverage on the policy contact a contractor to fix the problems send a non-renewal notice to the insured Increase the premium being charged
A bank that provides financing for the purchase of an auto may require the insured to name the bank on an auto policy to this situation, the bank would have A fiduciary responsibility to the insurer An insurable interest in the auto A surety interest in the auto Rights of subrogation
before receiving a policy from the insurer, a producer may give an insured a written document as proof of insurance. The document is referred to as a (an) 1. statement of insurance 2. endorsement of insurance 3. binder of insurance 4. manuscript of insurance
economic graphs for vouch insurance startup?
Due to high accident rates in South Africa during the Festive season, the Road Accident Fund has issued a warning to government that the fund will be insolvent soon. Advise the Minister on the cost of insurance that can collapse the scheme.
The difference between retrospective versus prospective reimbursement is that: a. Prospective reimbursement is cost-based and payments are based on each healthcare services/goods done or given; retrospective reimbursements are based on set standards such as DRGs in the case of hospitalizations. b. Retrospective reimbursement is cost-based and payments are based on each healthcare services/goods done or given; prospective reimbursements are based on set standards such as DRGs in the case of hospitalizations. c. Both payment systems practically mean the same thing since it is a way to reimburse providers of health care services on the services they have already given to patients. d. None of the choices are correct
Insurance companies are regulated under federal insurance laws. True False
Adverse selection and moral hazard are problems caused by asymmetric information. Explain their difference with reference to real daily examples.
Adverse selection occurs because of A) spreading of risks. B) diminishing marginal utility. C) of imperfect information. D) moral hazard
How does the presence of asymmetric information in the used car market impact the behavior of buyers, sellers, and market outcomes?