Q431
Moral hazard by health insurance companies can result in _________.
A.
Community rating
B.
Adverse selection
AnswerC.
Abuse of health insurance
D.
Risk pooling
Answer: Option B
Solution
Answer: Option B
Solution:
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.