General Insurance
What problem does the term adverse selection describe?
Answer and explanation
Answer: D. Adverse selection is the tendency of poorer than average risks to seek insurance, which is why underwriting and participation requirements exist. Insurer line selection, producer compensation, and lapse behavior are separate phenomena.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, adverse selection
More general insurance questions
- An insurer formed under the laws of Connecticut writes business in New York. How is it classified in New York?
- An insurer has not been granted authority to transact business in New York. How is it described?
- An insurer has taken late premiums for two years without comment, then declines a claim for late payment. What doctrine answers the insurer?
- An insurer incorporated in Ontario, Canada writes business in New York. How is it classified in New York?
- An insurer lets a former agent keep using its stationery and signs, and a client deals with him believing he still represents it. Which authority is in play?
- An insurer transfers part of the risk it has accepted to another insurer. What is that arrangement?
621 New York questions like this one.
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