Competitive insurance markets naturally tend to sort out the healthy (low risk) from the sick (high risk). This is done

[answerhappygod]

Competitive insurance markets naturally tend to sort out the
healthy (low risk) from the sick (high risk). This is done in a
variety of ways. One factor is that people themselves tend to
demand this sorting, either by opting not to purchase health
insurance until they think they need insurance, or by seeking out
insurance prices and products that reflect their expected needs.
Explain how this practice is supported by private insurance.