Question $14(2\mathrm{.}5$ points$)$

I

All of the following statements regarding insurance policies are correct EXCEPT:

Adverse selection is the tendency of those that most need inaurance to purchate insurance policies while those with the least perceived risk are less lately to pay the necescary premsums for insurance.

Deductibles serve as motivation for an inuored to take precautions to avoid

losses or to prevent the faing of fahe claims.

Co$-$parments are loss$-$sharing arangements wheretor the insured pays a flat dollar amount or percentage of the loss in excess of the deductible.

An endorsement is a modification or chance to a life or health insurmce polky.