Adverse selection occurs in transactions where one ... knowing that any potential health problem won't incur costs on them. This is a form of ex-ante moral hazard, as the risky behavior is taking ...

Conclusion In summary, the problem of adverse selection only emerges if the persons considering the purchase of insurance have more accurate private information on the probability of a loss than do ...

Benmelech, Effi, Jennifer Dlugosz, and Victoria Ivashina. "Securitization without Adverse Selection: The Case of CLOs." Journal of Financial Economics 106, no. 1 (October 2012): 91–113.