Question: The adverse selection problem arises in situations when the policyholders engage in risky activities that increase the probability of an insurance payoff. True False QUESTION

 The adverse selection problem arises in situations when the policyholders engage

The adverse selection problem arises in situations when the policyholders engage in risky activities that increase the probability of an insurance payoff. True False QUESTION 21 In a defined benefit plan, the retirement benefit will vary according to rates of return on pension fund reserves. True False

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