Adverse selection definition

Adverse selection. The Seller used no adverse selection procedures in selecting the Mortgage Loan from among the outstanding first-lien or second-lien, residential mortgage loans owned by it which were available for inclusion in the Mortgage Loans.
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Adverse selection means that the costs of covering Medicare eligible annuitants in a particular basic plan results in higher premiums for all members of that plan.
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Adverse selection means that women are not hired for certain jobs, despite their qualifications. In many places, women are often considered “secondary” wage earners and employers do not always recognize women’s role in supporting their families economically. Women often earn lower wages than men for the same or similar types of jobs, and are usually the last workers hired and the first fired.
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Examples of Adverse selection in a sentence

  • Dell’Ariccia, Giovanni, Friedman, Ezra und Marquez, Robert (1999), Adverse selection as a Barrier to Entry in the Banking Industry, RAND Journal of Economics 30, 3:515-534.

  • Adverse selection would be the result: Countries with relatively high protection (benefit) levels would attract high-risk individuals, resulting in increasing costs to the social security system.

  • Adverse selection results when a health insurance purchaser understands his or her own potential health risk better than the health insurance issuer does, resulting in a health plan having higher costs than anticipated.To protect themselves from adverse selection, issuers may include a margin in their pricing (that is, set premiums higher than necessary) in order to offset the potential expense of high-cost enrollees.

  • Adverse selection, however, does not bias our estimates since we observe exact credit score and our estimator does not depend on the density of observations by credit score within a category.

  • Adverse selection in insurance markets: Policyholder evidence from the UK annuity market.

  • Adverse selection associated with the requested increase is a function of CBUL and RBO election.

  • Adverse selection problems arise when banks are not able to differentiate between the high risk and low risk borrowers and they may make a contract with firms who are having a high probability of default.

  • Adverse selection relies on the assumption that there are relevant characteristics for risk that are observed by the insured, not the insurers (Rothschild and Stiglitz, 1976).2 Health is a good example: medical exams can overlook pathologies, or simply predispositions, known by the insured.

  • Adverse selection would further drive up the risk premium, possibly turning the credit system unsustainable over time.

  • Adverse selection –tehokkuuspalkkamallissa oletetaan, että menestys työtehtävissä riippuu työntekijän kyvykkyydestä ja että työntekijöiden kyvykkyys on heterogeenista.


More Definitions of Adverse selection

Adverse selection. No selection procedures were used by the Company that identified the Mortgage Loans as being less desirable or valuable than other comparable mortgage loans in the Company's portfolio;
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Related to Adverse selection

  • Adverse System Impact means a negative effect that compromises the safety or reliability of the electric distribution system or materially affects the quality of electric service provided by the electric distribution company (EDC) to other customers.

  • Company Adverse Recommendation Change shall have the meaning set forth in Section 5.3(c).

  • Adverse Recommendation Change has the meaning set forth in Section 6.02(d).

  • Adverse reaction means an unexpected outcome that threatens the health or safety of a patient as a result of a medical service, nursing service, or health-related service provided to the patient.

  • Random selection process means a process by which currently income-eligible households are selected for placement in affordable housing units such that no preference is given to one applicant over another except for purposes of matching household income and size with an appropriately priced and sized affordable unit (e.g., by lottery).

  • Adverse impact means any deleterious effect on waters or wetlands, including their quality, quantity, surface area, species composition, aesthetics or usefulness for human or natural uses which are or may potentially be harmful or injurious to human health, welfare, safety or property, to biological productivity, diversity, or stability or which unreasonably interfere with the enjoyment of life or property, including outdoor recreation.

  • Adverse Disclosure means any public disclosure of material non-public information, which disclosure, in the good faith judgment of the Chief Executive Officer or principal financial officer of the Company, after consultation with counsel to the Company, (i) would be required to be made in any Registration Statement or Prospectus in order for the applicable Registration Statement or Prospectus not to contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein (in the case of any prospectus and any preliminary prospectus, in the light of the circumstances under which they were made) not misleading, (ii) would not be required to be made at such time if the Registration Statement were not being filed, and (iii) the Company has a bona fide business purpose for not making such information public.

  • Reverse Sequential Order means (a) first, to the reduction of the Note Principal Balance of each B Note, on a Pro Rata and Pari Passu Basis, until the Note Principal Balance of each such Note is reduced to zero; and (b) second, to the reduction of the Note Principal Balance of each of A Note, on a Pro Rata and Pari Passu Basis, until the Note Principal Balance of each such Note is reduced to zero.

  • Adverse REMIC Event As defined in Section 9.01(f) hereof.

  • Final Internal Adverse Benefit Determination means an Adverse Benefit Determination that has been upheld by BCBSTX at the completion of BCBSTX’s internal review/appeal process.

  • Adverse Benefit Determination means any of the following:

  • Minimal sedation means a minimally depressed level of consciousness, produced by a pharmacological method, that retains the patient's ability to independently and continuously maintain an airway and respond normally to tactile stimulation and verbal command. Although cognitive function and coordination may be modestly impaired, ventilator and cardiovascular functions are unaffected;

  • Compliance Statement is that certain statement in the form attached hereto as Exhibit B.

  • Adverse drug reaction means any undesirable or unexpected medication related event that requires discontinuing a medication or modifying the dose, requires or prolongs hospitalization, results in disability, requires supportive treatment, is life-threatening or results in death, results in congenital anomalies, or occurs following vaccination.

  • Initial Required Registration Amount means (I) the sum of (i) the number of Common Shares and (ii) the maximum number of Warrant Shares issued and issuable pursuant to the Warrants, without regard to any limitations on exercise of the Warrants or (II) such other amount as may be permitted by the staff of the SEC pursuant to Rule 415.

  • Required Filing Date has the meaning assigned to such term in Section 2.1.1(b);

  • Deficient Exchange Act Deliverable With respect to the Servicer, the Special Servicer, the Certificate Administrator, the Custodian, the Trustee and each Servicing Function Participant and Additional Servicer retained by it (other than a Loan Seller Sub-Servicer), any item (x) regarding such party, (y) prepared by such party or any registered public accounting firm, attorney or other agent retained by such party to prepare such item and (z) delivered by or on behalf of such party pursuant to the delivery requirements under Article 13 of this Agreement, that does not conform to the applicable reporting requirements under the Securities Act, the Exchange Act, the Xxxxxxxx-Xxxxx Act and/or the rules and regulations promulgated thereunder.

  • ECB Recommended Rate Index Cessation Effective Date means, in respect of an ECB Recommended Rate Index Cessation Event, the first date on which the ECB Recommended Rate is no longer provided, as determined by the Issuer and notified by the Issuer to the Calculation Agent;

  • Most serious offense means any of the following felonies

  • Investor Material Adverse Effect means, with respect to a particular Investor, any fact, event, circumstance, change, occurrence, effect or condition which has had or would reasonably be expected to have, individually or in the aggregate with all other facts, events, circumstances, changes, occurrences, effects or conditions, a material adverse effect on the ability of such Investor to consummate the transactions contemplated by this Agreement.

  • Adverse Event means any untoward medical occurrence in a patient or clinical investigation subject administered a pharmaceutical product and that does not necessarily have a causal relationship with the treatment. An adverse event can therefore be any unfavourable and unintended sign (including an abnormal laboratory finding), symptom, or disease temporally associated with the use of a medicinal product, whether or not related to the medicinal product.

  • ECB Recommended Rate means a rate (inclusive of any spreads or adjustments) recommended as the replacement for €STR by the European Central Bank (or any successor administrator of €STR) and/or by a committee officially endorsed or convened by the European Central Bank (or any successor administrator of €STR) for the purpose of recommending a replacement for €STR (which rate may be produced by the European Central Bank or another administrator), as determined by the Issuer and notified by the Issuer to the Calculation Agent;

  • Purchaser Material Adverse Effect means any material and adverse effect on (i) the ability of a Purchaser to meet its obligations under the Basic Documents on a timely basis or (ii) the ability of a Purchaser to consummate the transactions under any Basic Document.

  • Cover material means soil placed over a soil dispersal component composed predominately of mineral material with no greater than ten percent organic content. Cover material may contain an organic surface layer for establishing a vegetative landscape to reduce soil erosion.

  • COVID-19 test means a viral test for SARS-CoV-2 that is:

  • Fundamental Change Company Notice shall have the meaning specified in Section 15.02(c).