An insurer is exposed to the risk of anti-selection if a policyholder or group of policy holders can make use of information not available to the insurer to obtain insurance cover that would not have been granted if the insurer had had the information, or to obtain cover on more favorable terms than would have been granted by the insurer. An insurer may also be exposed to the risk of anti-selection by failing to make use of available relevant information.
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UK: See: Adverse Selection.
Insurance Encyclopedia
Anti-theft devices
Any of several devices used by the insured to try to prevent the theft of a vehicle includes The Club, alarms, kills switches, etc.
Anti-theft recovery system
These systems consist of an electronic device that’s installed in a concealed area of a car. If the car gets stolen, the device can be activated, and it will emit a signal that can be used to locate the car. Installation of an anti-theft recovery system may provide eligibility for an auto insurance discount. LoJack is one.
Anti-trust laws
Laws that prohibit companies from working as a group to set prices, restrict supplies or stop competition in the marketplace. The insurance industry is subject to state antitrust laws but has a limited exemption from federal antitrust laws. This exemption, set out in the McCarran-Ferguson Act, permits insurers to jointly develop common insurance forms and share loss data to help them price policies.
Antimarkup rule
Medicare regulation that limits the amount that can be billed by a physician or group practice for the technical component of diagnostic tests (excluding clinical diagnostic tests performed by clinical laboratories) that are performed by an outside supplier.
Antirebate law
Statute in most states that it is illegal practice by an insurance agent to discount or return any portion of his or her commission to encourage an applicant to buy or renew an insurance policy.
Antireferral statutes
Laws that forbid a physician from referring a patient to receive a service or supply in which the referring physician has a financial relationship to the supplier. Also known as Stark I Regulations and Stark II Regulations.
Antitrust laws
Federal and state statutes that prohibit institutional mergers and acquisitions, exclusive contracts, joint ventures, price discriminations, price fixing, monopolies, and business dealings in situations that may greatly reduce competition, which may lead to a detrimental effect on consumer welfare. In medical care, this concerns arrangements between specialists that render exclusive service contracts with their hospitals. The main federal antitrust acts are: Sherman Antitrust Act (1890), Clayton Act (1914), Federal Trade Commission Act (1914), and Robinson-Patman Act (1936).