Answer:
This statement is true.
Explanation:
The statement that "The more collateral there is backing a loan, the less the lender has to worry about adverse selection" is true because collateral reduces the adverse selection problem.
Answer: Regulators promote the interests of the firms they regulate.
Explanation: Capture theory of regulation asserts that regulators promote the interest of the firms they regulate. The result is that an agency that are charged with acting in the public interest, instead acts in ways that benefit the industry it is supposed to be regulating. Capture theory of regulation is a theory that explains agency established to regulate an industry for the benefit of society acts in the opposite to promote the benefit of the industry.
Regulatory capture is an economic theory which asserts that regulatory agencies may come to be dominated by the industries or interests they are charged with regulating. The captured agency begins to advance the interests of the industry rather than protecting the consumers. Problems arise when a regulating agency acts in the interests of regulated industry to the detriment of the general public.
Answer:
If the insurance company discovers the error upon Marcella's death, what action will the insurance company take?
The insurance company will pay the death benefit, but they Cannot reduce what the premium should have been with Marcella's correct age. because she has already been insured.
so It is False that they will Pay the death benefit based on Marcella's actual age.
Explanation:
They will have to pay based on the insured agreement with her before her death because the should have confirmed her real age before her death.
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