Question

55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property and casualty 56. The problem of occurs when those most likely to get large insurance payoffs are the ones who want to purchase insurance the most. (a) asymmetric information (b) moral hazard (c) adverse selection (d) fraudulent behavior 57. To prevent adverse selection, health and life insurance companies may do all the following except (a) charge higher premiums to people with certain pre- existing health conditions. (b) require potential policyholders to submit medical records. (c) refuse to sell policies to people with certain pre- existing health conditions. (d) charge the same premiums to all policyholders 58 Which is not a management practice for reducing the problems of adverse selection and moral hazard in insurance? (a) deductibles (b) restrictive provisions (c) coinsurance (d) reinsurance 59. Insurance companies employ underwriters (a) as an alternative to higher deductibles. (b) to control the risky behavior of their policy holders. (c) to control the risk incurred on their behalf by agents. (d) to encourage the loyalty of exclusive agents. (e) to maintain the independence of independent agents.

Answer 1

Solution :- 55

The Correct Answer is (A) that is Life Insurance

The earliest form of insurance was Life Insurance. The First Life Insurance was done in 18th Century

The Company that introduced the first life insurance was  the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen.

If there is any doubt please ask in comments

As per HomeworkLib policy we need to answer only one question at once so please ask others as seperate one