Question

When applying for health insurance one of the questions is "Are you in good health?" Despite being HIV positive, I answer "yes" because I currently have no symptoms. Six months later I develop AIDS and the insurance company refuses to pay for my treatment. I sue the insurance company and the insurance company is forced to pay because the application did not specifically ask about HIV, but rather was ambiguous about the meaning of "in good health." This is an example of: moral hazard indemnification contract of adhesion morale hazard adverse selection

          When applying for health insurance one of the questions is "Are you
in good health?" Despite being HIV positive, I answer "yes" because
I currently have no symptoms. Six months later I develop AIDS and
the insurance company refuses to pay for my treatment. I sue the
insurance company and the insurance company is forced to pay
because the application did not specifically ask about HIV, but rather
was ambiguous about the meaning of "in good health." This is an
example of:
moral hazard
indemnification
contract of adhesion
morale hazard
adverse selection

When applying for health insurance one of the questions is "Are you
in good health?" Despite being HIV positive, I answer "yes" because
I currently have no symptoms. Six months later I develop AIDS and
the insurance company refuses to pay for my treatment. I sue the
insurance company and the insurance company is forced to pay
because the application did not specifically ask about HIV, but rather
was ambiguous about the meaning of "in good health." This is an
example of:
moral hazard
indemnification
contract of adhesion
morale hazard
adverse selection

Added by Martin N.

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