Final answer:
Gloria is considering changing her life insurance policy, and this situation reflects the common issue in insurance where individuals have more knowledge of their risk factors than companies can easily investigate.
Step-by-step explanation:
The scenario concerning Gloria considering replacing her current life insurance policy based on her agent's recommendations highlights a critical aspect of insurance dealings. Individuals often possess more detailed knowledge about their personal risk factors than insurance companies can effectively discern through investigations, as suggested by the information provided. For instance, a person may be aware of extensive family health history that could affect life insurance or they might know their own driving habits better than the insurer, indicating they are a higher risk without having had a major accident. This asymmetry in information is a challenge for insurance companies, as it limits their ability to assess risk accurately.