CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

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.
Correct Answer: A

The person getting insured has more information about the quality of his or her health than the insurance company.

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