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Essay

Macroeconomics

Essay specific features

 

Issue:

Business

 

Written by:

Ann T

 

Date added:

January 30, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1663

 

Was viewed:

4949 times

 

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Essay content:

Adverse selection is a situation where a selection process ends with only those with undesirable characteristics left. Probably the best example of adverse selection is car insurance. Let us assume that there are two types of poor drivers, those that are just bad drivers and those that are just purely unlucky...
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This explains why there are some good drivers who have huge premiums or just can't get car insurance. The insurance company cannot determine which of the drivers have bad driving habits and which have only had a string of bad luck accidents. Therefore for the insurance company to insure those with poor driving records they must charge extra high premiums...
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General issues of this essay:
drivers ed About MetLife India Insurance Company Pvt. Ltd. Case Rusnak Insurance Company How Insurance Company to Encounter the Economic Downturn in Hong Kong Manzana Insurance Company The Profitability Of Insurance Premiums In Managed Care Plans Drowsy Drivers A Comment on Drivers Crazy Drivers Crazy Drivers Drivers Drivers Drivers The relationship between the Dutch Haviltex case and the English HSBC Bank plc v. Liberty Mutual Insurance Company (UK) Ltd case Should there be limits on new drivers?
 

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