4 ms·

Surely the insurance companies are also aware of this fact.

• willhinsa 5y ago
  You'd be surprised what insurance companies overlook sometimes. An actuary told me one company he worked for accidentally sold an insurance policy for death due to cancer, but didn't ask applicants whether or not they currently had cancer. So that was quite expensive lesson on selection bias for that company, lol.
  • adgjlsfhk1 5y ago
    There was a freakanomics episode about someone taking out a bunch of life insurance policies against seniors in hospice.