The tendency for a policy offered to all to be taken up by those to whom it is going to benefit more. For example by offering medical insurance without examination, the policy is likely to attract ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Ebony Howard ...

Adverse selection occurs in health insurance when there is an imbalance of high-risk, sick people to healthy people. The imbalance can happen due to sick people, who require more insurance, using more ...

Adverse selection in health insurance happens when sicker people—or those who present a higher risk to the insurer—buy health insurance while healthier people don’t buy it. Adverse selection can also ...