Sentences with adverse selection
ad·verse se·lec·tion
A a - Insurance companies need to limit the risk of adverse selection, and ensure that not only the "bad" risks seek insurance.Since there is a tendency for those most likely to have losses to take out health insurance, an element of adverse selection exists.Adverse selection is a term used to describe the tendency of those in dangerous jobs or with high-risk lifestyles to want to take out life insurance.
- It is adverse selection that leads US workers who anticipate high family medical expenditure to seek employers with superior health insurance coverage for their employees. The large number of "lemons" in the used-car market is the result of adverse selection.