In the Case of Insurance, _______________ Arises Because the Buyers

Multiple Choice

In the case of insurance, _______________ arises because the buyers of insurance have more information about _____________________than the insurance company does.

A) moral hazard; their risk rating
B) actuarial prices; their high-risk or low-risk status
C) adverse selection; the risk group they belong to
D) fundamental laws; actuarial fairness