$[$Related to Solved Problem$9\mathrm{.}2]$ A reader wrote to an advice column in the New York Times complaining that his insurance company canceled his$$ homeowner's policy after he had filed two claims. The advice columnist discovered that

open double quote$$a

lot of people have shared a version of$[$this man's$]$ experience $...$ a couple of small claims $...$ then

nonrenewal.close double quote$$

$$Source: David$$ Segal,

open double quote$$Spurned

by an Insurer after Filing Small

$$Claims$,$close double quote$$

New York

Times$,$

April$25,2015.$

Part $2$

By canceling these$$ people's policies, insurance companies are attempting to avoid

$$

$$

raising policy premiums

adverse selection

$.$