II Risk Classification Subsidization Adverse selection Principles of risk classification---fairness Separation and class homogeneity Reliabilit Incentive value a Social acceptabilityII. Risk Classification ▪ Subsidization ▪ Adverse Selection ▪ Principles of risk classification---fairness ▪ Separation and class homogeneity ▪ Reliability ▪ Incentive value ▪ Social acceptability