Pls help with below multiple-choice homework question, I need answer to all parts with just 4-5 sentences only. Answer the following True/False questions about the model of competitive insurancewith symmetric information.a. In the symmetric information equilibrium, both types of insurance customer get policesthat provide perfect insurance.O TrueO Falseb.The Type H customer would prefer to purchase the Type L policy.O TrueO FalseC. The Type L customer would prefer to purchase the Type H policy.O TrueO Falsed. Both types of insurance customers receive the same insurance policy.O TrueO False

Answer the following True/False questions about the model of competitive insurance with symmetric information. In the symmetric information equilibrium, both types of insurance customer get polic that provide perfect insurance. O True O False The Type H customer would prefer to purchase the Type L policy. O True O False

Answer the following True/False questions about the model of competitive insurance with symmetric information. In the symmetric information equilibrium, both types of insurance customer get polic that provide perfect insurance. O True O False The Type H customer would prefer to purchase the Type L policy. O True O False

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 5PA

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QUESTION 1 One of the solutions to the adverse selection problem in insurance is O a. Is to require everyone to buy insurance O b. Is to require that only the low risk individuals buy insurance O c. Is to completely ban insurance companies d. Is to require that only the high risk individuals to buy insurance
Insurance buyers have more information about whether they are high-risk or low-risk than the insurance company does. This creates an asymmetric information problem for the insurance company because buyers who are high-risk tend to want to buy more insurance, without letting the insurance company know about their higher risk. How might this problem impact an insurance company? F T O The company will not be impacted. O The insurance buyers, not the company, will be impacted. As high risk buyers submit claims, they will use up the company's funds for that year, and since the company did not adjust for these high risk claims, once that money is used up, remaining claimants won't receive any coverage. The company will be faced with heavy losses. The insurance company may decide not to sell insurance in this market at all or otherwise choose not to sell insurance to those they can identify as high risk. 106 # C 4 $ JUL 21 tv♫♬ % MacBook Pro Search or type URL + W D P N Ⓒ
Which of he following stalements about lhe Time Limil on Certain Defenses provision in an Accident and Heallh policy is CORRECT? A.It specifies the period of time after which an insurance company can deny a claim on he basis of the claim having pre-existed before the effective dale of coverage. B.It specifies the period of lime during which the insured must submit Proof of Loss. C.It prohibits legal actions against the insurance company after a specified period of time. D.It prevents an insurance company from maki any changes to a policy after il is issued.
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