what does the word "adverse" mean???

Answer 1

1. unfavorable or antagonistic in purpose or effect: adverse criticism.
2. opposing one's interests or desire: adverse circumstances.
3. being or acting in a contrary direction; opposed or opposing: adverse winds.
4. opposite; confronting: the adverse page.

Answer 2

The term adverse selection was originally used in insurance. It describes a situation where, as a result of private information, the insured are more likely to suffer a loss than the uninsured.

For example, suppose that there are two groups among the population, smokers and non-smokers. An insurer selling life policies can't tell which is which, so they each pay the same premiums. Non-smokers are likely to die older than average, while smokers are likely to die younger than average. So the life policy is a better buy for the smokers' beneficiaries. The insurance company anticipates or learns that the mortality rate of the combined policy holders exceeds that of the general population, and sets the premiums accordingly. The result is that non-smokers tend to go uninsured though if they could buy a policy on terms that are actually fair given their characteristics, they would do so. So market failure is involved.

Furthermore, as a result of the higher premiums, not only do some non-smokers who do not want to pay the higher premiums cancel their policies and go uninsured, some smokers who cannot afford the higher premiums cancel their policies and go uninsured. Since there are fixed costs in running an insurance company, the insurance company must spread the fixed costs across fewer policies. This results in a reduction of profits or actual loses which forces the insurance company to again raise premiums.

With further rises in premiums, more non-smokers and smokers who cannot afford the higher premiums decide to cancel their coverage and go uninsured. This means the insurance company has even fewer policies to spread fixed costs across and results in further premium increases. This vicious cycle continues until the premiums become so high that no non-smoker or smoker can afford the policies or there are too few policies to spread fixed costs across. At this point, the insurance company goes out of business and no one has insurance.

In the early days of life insurance, adverse selection forced many life insurance companies out of business until the life insurance actuaries learned to compensate for adverse selection and underwriting procedures were improved to minimize adverse selection.

Whether examples of this sort apply in reality is an open question. Smokers may tend to reckless behavior in general, so be relatively disinclined to insure. Or they may be in denial and not want to recognize their enhanced mortality. When the insured are less at risk than the uninsured, this is known as advantageous selection.

Answer 3

opposite

Answer 4

Unfavorable, not suitable for the situation..