adverse selection adverse selection /ædˈvɜrs sɪˈlɛkʃən/

noun

1. A situation where sellers have information that buyers don't (or vice versa) about some aspect of product quality.  ( adverse selection , anti-selection )
   A situation where sellers have information that buyers don't (or vice versa) about some aspect of product quality.
    The insurance company investigators realized new policy-holder Louis was an adverse selection shortly after he was insured, when a slew of illnesses suddenly sent him to the hospital numerous times.
   The insurance company investigators realized new policy-holder Louis was an adverse selection shortly after he was insured, when a slew of illnesses suddenly sent him to the hospital numerous times.