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Basic Question 6 of 10
An insured person may choose to conceal certain unhealthy habits or genetic traits that make the health insurance attractive for the person but unprofitable for the company. This is an example of:
B. moral hazard.
C. regulatory capture.
A. adverse selection.
B. moral hazard.
C. regulatory capture.
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Learning Outcome Statements
describe the economic rationale for regulatory intervention;
CFA® 2024 Level II Curriculum, Volume 1, Module 10.