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Intro to Risk Mgt Homework 3.docx

Intro to Risk Mgt Homework 3.docx - Carl Trunko Intro to...

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Carl Trunko Intro to Risk Mgt/Insurance Homework #3 1. Provide three examples of when a person may be likely to malinger a. A soldier may pretend to be injured because he/she does not wish to risk their lives in battle b. A person who is tempted to get compensated for a nonexistent injury may fake an illness to collect money c. A student may fake an illness to be able to stay home from school to gain an extra day to study for an upcoming test 2. What is meant by adverse selection and how does it end up with some insureds subsidizing other
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