Selection

{
  "id": "MLC-T-INS-003051",
  "term": "Selection",
  "field": "Insurance and risk management",
  "definition": "The process by which an insurer evaluates and classifies risks to determine whether to accept or reject an application for insurance, and at what premium rate. This involves assessing factors such as health, occupation, and lifestyle for life insurance, or property characteristics and claims history for property insurance. Effective selection aims to mitigate adverse selection, where individuals with higher-than-average risk are more likely to seek insurance.",
  "url": "https://mlchart.com/terminology/insurance/selection/"
}