why would a fire insurance policy contain a $150 deductible provision?

Question and answer

Question

Asked 2/10/2010 6:05:32 PM

Updated 2/8/2024 12:23:40 AM

2 Answers/Comments

This conversation has been flagged as incorrect.

Unflagged by Rhed°88 [2/8/2024 12:23:38 AM]

Get an answer

Search for an answer or ask Weegy.

Original conversation

User: define adverse selection

User: what is adverse selection?

User: why would a fire insurance policy contain a $150 deductible provision?

Weegy: So that you can't claim any insurance money on small fires. Only one doing $150 worth of damage would be helped with by the Ins. Co. [ Also, this prevents someone from burning a broken valuable (ie an xbox) and claiming money for a new one through the insurance. ]
Expert answered|Graft316|Points 25|

User: is fire insurance policy adverse selection or moral hazard?

Question

Asked 2/10/2010 6:05:32 PM

Updated 2/8/2024 12:23:40 AM

2 Answers/Comments

This conversation has been flagged as incorrect.

Unflagged by Rhed°88 [2/8/2024 12:23:38 AM]

New answers

Rating

Rhed°88

Adverse selection is a market situation where buyers and sellers have different information.

Added 2/8/2024 12:23:06 AM

This answer has been confirmed as correct and helpful.

Rhed°88

Fire insurance policy is moral hazard.

Added 2/8/2024 12:23:34 AM

This answer has been confirmed as correct and helpful.

Comments

There are no comments.

Add an answer or comment

Questions asked by the same visitor

what are some examples of components of net income with persistence of zero

Weegy: [ ] (More)

Question

Expert Answered

Updated 10/20/2022 2:38:54 PM

2 Answers/Comments

MsAnyaForger

Some examples of components of net income with persistence of zero are: Permanent changes in sales, for instance as a result of competition changes, new technology, profitable patents, or acquisitions, are examples of components of net income with high persistence.

Added 10/20/2022 2:38:12 PM

This answer has been added to the Weegy Knowledgebase

Deleted by MsAnyaForger [10/20/2022 2:38:25 PM], Unflagged by Ms Yor [2/8/2024 1:43:39 AM]

MsAnyaForger

Some examples of components of net income with persistence of zero are: result of competition changes, new technology, profitable patents, or acquisitions, are examples of components of net income with high persistence.

Added 10/20/2022 2:38:54 PM

This answer has been confirmed as correct and helpful.