You fraudulently subscribe to an insured group of lower risk individuals than you truly should belong to with?

your health problems to get lower premiums. This is known as:

a.Selection of the fittest
b.Adverse selection
c.Cherry picking
d.Moral hazard

Answer:
Based on what you've said, this formally wouldn't be any of these but I think the answer you're seeking is (B) Adverse Selection.

This would be an adverse selection problem if the following also occurred:

1. The insurance company could not distinguish between those of poor health and those of good health

2. The individuals (insured) *knew* if they were of poor or good health.

(1 and 2 above together imply asymmetric information in the market environment)

3. The insurance company offered a single rate for all insured because it could not distinguish between people with poor health and those with good health.

#3 is necessary because without it, this implies that the insurance company CAN distinguish between people and therefore can charge a higher premium to those that are ill. Of course, it's possible that the insurance company uses an imperfect screening method to distinguish between these two groups and some individual can squeeze through. But if that's the case, it's not a formal adverse selection problem.

Hope this helps.

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