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Examveda

Moral hazard by health insurance companies can result in _________.

A. Community rating

B. Adverse selection

C. Abuse of health insurance

D. Risk pooling

Answer: Option B

Solution(By Examveda Team)

Moral hazard by health insurance companies can result in adverse selection. Adverse selection occurs when there's a lack of symmetric information prior to a deal between a buyer and a seller.

This Question Belongs to Commerce >> Insurance

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