Explain how the moral hazard problem might arise

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Reference no: EM131180354

For each of the following types of insurance, explain how the moral-hazard problem might arise. Explain how the adverse selection problem might arise.

a. Life insurance

b. Health insurance

c. Homeowners' insurance

d. Automobile insuranc

e. Unemployment insurance How might an insurance company adjust the insurance contract to mitigate the moral-hazard and adverse-selection problems?

Reference no: EM131180354

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