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Adverse Selection The good risks drop out. A common story. Insurer offers a new type of policy. Hoping to make money. It loses money. Reason given: too many bad risks bought…

Documents Adverse Selection The good risks drop out. A common story. Insurer offers a new type of policy. ...

Slide 1 Slide 2 Adverse Selection The good risks drop out. Slide 3 A common story.  Insurer offers a new type of policy.  Hoping to make money.  It loses money.…