Adverse Selection

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Adverse selection

Refers to a situation in which sellers have relevant information that buyers lack (or vice versa) about some aspect of product quality.

Adverse Selection

A sociological phenomenon in which those persons with the most dangerous lifestyles or careers are the most likely to buy life insurance policies. Adverse selection may also occur if those persons conceal or falsify relevant information when they apply for the insurance policy. This has the potential of economic hardship for life insurance companies because those most likely to receive a death benefit are the ones buying policies. This reduces profit potential. Life insurance companies attempt to counteract adverse selection by limiting coverage and/or raising premiums. Adverse selection is also called antiselection.

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Association Group Association Group Insurance Asymmetric Information Housing Bank Pecking-Order View			Employers also are asking for larger group life insurance benefit maximums for their executives, which is causing unbalanced plan design and more adverse selection risk. New options arise from competition: group life insurance writers are ... by Muncil, Carol / Best's Review The readings are organized under six broad themes: bilateral contracting under asymmetric information and adverse selection; single-agent incentive problems and moral hazard; multilateral asymmetric information and mechanism or auction design; multi-agent incentive problems, moral hazard in teams, and the internal organization of firms; dynamic adverse selection of moral hazard, renegotiation, and relational contracts; and incomplete contracts and the theory of the firm. The economics of contracts; 2v by Reference & Research Book News While the adverse selection issue could go either way, Alt says she thinks it will become evident fairly quickly, "It won't take long for them to elect or not elect. Sounding off on ARRA by Anderson, Brian / Benefits Selling			Advance Rate Advance Refunding Advance Renewal Advance Start Advance tax ruling Advance-Decline Advance-Decline Index Advance-Decline Line Advance/Decline Spread Advanced Corporation Tax Advanced Life Underwriting Advanced Manufacturing Environment Advanced Technology Product Advancement Advancer Advancing Volume Adventure Adversary Adverse Action Adverse Balance adverse claim adverse financial change condition Adverse Financial Selection Adverse Opinion adverse possession Adverse Selection Adverse Supply Shock Adversely Classified Assets Advertised Price Advertisement Advertiser Advertisers Liability Insurance Advertising Age Advertising Agency Advertising Allowance Advertising Appropriation Advertising Checking Bureau Advertising Club of New York Advertising Contract Advertising Costs Advertising Council Inc. Advertising Manager Advertising Research Foundation Advertising Reserve Advertising Weight Advertising Women of New York Advertorial Advice of Acceptance Advice of Fate Advice of Nonacceptance Advise Fate			adverse food reaction adverse food reaction adverse food reaction adverse fortune Adverse interest Adverse interest Adverse interest Adverse interest adverse lot adverse luck Adverse Mechanical Cord Tension Adverse Medical Device Event adverse opinion adverse opinion Adverse Opinions Adverse Opinions Adverse party Adverse possession Adverse possession Adverse possession Adverse possession Adverse Pregnancy Outcome Reporting System Adverse pressure gradient Adverse Psychiatric Reactions Information Link adverse reaction adverse reaction Adverse Reaction Reporting Project adverse reactions Adverse Reactions Terminology adverse reason Adverse Selection Adverse State Detector Adverse Supply Shock Adverse Supply Shocks adverse syndrome adverse syndrome adverse syndrome adverse syndrome Adverse System Interaction Adverse tenancy Adverse tenancy Adverse tenancy Adverse tenancy adverse to adverse weather adverse weather aerial delivery system adverse weather aerial delivery system Adverse Weather Cockpit Adverse Weather Insurance Group Adverse Weather Precision Guided Munition adverse witness adverse witness Adverse, Anthony Adverse-Effect-Level adversely adversely adversely adversely adversely affected Adversely Classified Asset Adversely Classified Assets

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