Adverse Selection


Definition of "Adverse selection"

Marci  Barton Group / The Barton Bauer Group
  RE/MAX DFW Associates

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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