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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:

A. adverse selection.
B. moral hazard.
C. regulatory capture.

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Lina

Lina

Learning Outcome Statements

describe the economic rationale for regulatory intervention;

CFA® 2024 Level II Curriculum, Volume 1, Module 10.