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Adverse selection
ADVERSE SELECTION

Definition: (US) (Insurance) Disproportionate risks, e.g., those who are poorer or more prone to suffer loss or make more claims than the average risk. It may result from the tendency for poorer risks or less desirable insureds (sick people) to seek or continue insurance to a greater extent than do better risks (healthy people), or for the tendency for the insured to take advantage of favorable decisions in insurance contracts.
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See perfect level (2).

See perfect disproportion.
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See perfect insurance (1).

See perfect type (1).
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See perfect tendency (1).

See perfect form (1).

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