Question

What is anti-selection in partnership insurance?

a.

The tendency of the surviving partners to select the lowest amount of cover

b.

The tendency of the surviving partners to select the highest amount of cover

c.

The tendency of partners with poor health to select partnership insurance

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (c).The tendency of partners with poor health to select partnership insurance Explanation:Anti-selection in partnership insurance refers to the tendency of partners with poor health to select partnership insurance. This can result in higher premiums for the insurance policy. To minimize anti-selection, it is advisable to consider partnership insurance on the lives of all the partners simultaneously.

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