Question: Suppose that Jack faces higher insurable risks than Mary. If they have the same risk averse utility function, which of the following statements is NOT

Suppose that Jack faces higher insurable risks than Mary. If they have the same risk averse utility function, which of the following statements is NOT correct? Question 10Select one: a. Mary may not buy a full coverage policy if the premium is fair to Jack's risk level. b. When the insurer knows their risk levels and offers full coverage policies, the fair premium is higher for Mary. c. For a full coverage policy, the maximum premium that Mary is willing to pay is lower than the maximum premium that Jack is willing to pay. d. If the insurer knows their risk levels and offers policies at their own fair premium (i.e., no adverse selection problems), both will elect to buy a full coverage

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