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true or false adverse selection is illustrated by people who take greater risks after they purchase insurance.

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User Namuna
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1 Answer

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The answer is false. It is because adverse selection is a way of having information while the other party does not have, for example as the buyer has information, the seller does not have it and vice versa. But in a way of insurance, in order for them to purchase it, they have to do through dangerous ways in order to obtain it and not a way of having risk after having the purchase which is wrong that is why it is considered to be false.
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User Whbogado
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