A producer gathers information about the applicant, for the insurer, in order to avoid adverse selection.
In Insurance, underwriting loss means a company loss due to poor underwriting. For instance Higher actual mortality than expected. Adverse selection. mortality Deterioration. Anti-Selections. Increased claim frequency and severity of healthcare.
The term Adverse Selection is also known as Anti-Selection and Negative Selection. Adverse Selection is a term referring to a market process when undesired results happen when buyers and sellers have access to different information.
As it applies to insurance, the adverse selection problem is the trndency for:
Adverse selection occurs before the financial transaction takes place
akerlof, adverse selection
The simple answer is that both adverse selection and moral hazzard impose risk to the party. When this party is risk neutral, he or she would not be adversly affected by the risks associated with the transactions including risk of adverse selection.
what leads to moral hazard or averse selection ? The answer is asymmetric information . So if asymmetric information does not exist, there will be no question about them . Agree ?????
physical agility
Yes, adverse possession can transfer to the new owner of a property if the conditions for adverse possession are met and the new owner does not take action to prevent it.
In House underwriting means that the lender is doing their own underwriting instead of sending it out to a 3rd party underwriter.
Natural selection directs evolution; it cannot stop or prevent it.