Adverse selection refers to the fact that people:

1. they are more likely to buy insurance when they have a low chance of suffering a loss

2. are less likely to buy insurance when they have no chance of suffering a loss

3. are less likely to buy insurance when they know they have a low chance of suffering a loss

4. are more likely to purchase insurance when they know they have a high chance of suffering a loss

Fixtures in stores and restaurants are treated the same as fixtures in private homes.

True False

A House is an example of commercial real estate.

True False