General Insurance Principles第 166 / 474 题
Underwriting exists largely to control adverse selection, which is the tendency of:
a.applicants with a greater than average chance of loss to seek insurance
b.insurers to compete for the same low-hazard accounts in a soft market cycle
c.agents to place business with whichever insurer pays the most commission
d.insureds to file more claims once a deductible has been paid in full
解析
Adverse selection is the pull of worse-than-average risks toward coverage, and toward keeping it, in larger proportion than the average risks the rate assumed. Underwriting screens and classifies applicants so the price matches the exposure. The choice about competing for good accounts describes market cycles, not selection against the insurer.
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