Question
Asked Nov 19, 2019
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If people get higher pay from insurance than their premiums. Will this increase or decrease the death rate of average persons? Is this an example of moral hazard or adverse seletion? How will an insurance company deal with these problems? 

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Expert Answer

Step 1

Moral Hazard:

Moral hazard is a situation, which arises when a person an insured person takes gr...

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