Question

Items (6 items) (Drag and drop into the appropriate area below)

• You go on a drinking binge after getting a new health insurance policy.

• Life insurance companies aren't always fully aware of patients' health history.

• Even though you are a smoker, you have heard that if you quit for a month, insurance companies won't be able to detect nicotine in your system. You quit for a month, and you get a good rate on your insurance.

• Your auto insurace company raises everyone's rates because of a rash of accidents. Your rate rises too, even though you haven't had an accident.

• Your orthodontist says your children need braces. You don't get a second opinion. After all, why would the doctor lie?

• Consumers trust doctors to order only procedures that are necessary.

• Adverse selection

• Principal-agent

• Neither