| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,727,869,907 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Adverse Selection |
Also found in: Medical, Wikipedia | 0.01 sec. |
|
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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
This underwriter would broadly define antiselection as a state that exists when the proposed insured is aware of facts in his health habits (or lack thereof), medical history, avocations, and other scenarios that are intentionally not disclosed at the time of application. The new process maximizes detection of antiselection and fraud while increasing underwriter efficiency. Companies also should consider how changing their underwriting requirements might influence the risk of antiselection and how antiselection may change the frequency of an impairment among those applying for insurance. |
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|