Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 12, Problem 5SPPA
To determine

To explain:

Whether the problem of adverse selection problem arises in a transaction between Ms. M and the insurance company.

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What is an insurance premium?
Detail a risk that could be transferred to an insurance company, but isn’t utilized as often as the most common ones mentioned.  Explain the risk that can be transferred, when it’s used, and why it isn’t.
Robert decides to start working for the local ridesharing company. He has a large 12-passenger van and thinks he will be in big demand at the airport. He tells his personal car insurance company that he is driving for a ridesharing company, and he needs some additional insurance. He is denied additional coverage. Why? There is no such thing as ridesharing insurance. He lives in a state that doesn’t offer ridesharing insurance. The city he lives in is too small for him to qualify for ridesharing insurance. Many insurance companies will not insure high-occupancy vehicles under their ridesharing policies.
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