Definition of "Adverse selection"

Tina St. Clair real estate agent
Tina St. Clair, Real Estate Agent St Clair Realty Group, Llc

Process in life insurance by which an applicant who is uninsurable, or is a greater than average risk, seeks to obtain a policy from a company at a standard premium rate. Life insurance companies carefully screen applicants for this reason, since their premiums are based on policyholders in average good health and in non-hazardous occupations.

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