What is the tendency of someone like Jeremy, who has maintained an individual health insurance policy due to a family history of cancer?

The correct choice identifies the phenomenon of adverse selection. This occurs when individuals who perceive themselves to be at higher risk of requiring health care, such as Jeremy with a family history of cancer, are more likely to seek out insurance coverage compared to those who view themselves as low risk.

In Jeremy's case, his concern about his family's medical history leads him to maintain an individual health insurance policy actively. This can skew the insurance pool, as those who expect to use health care services more often are more likely to acquire and keep coverage, resulting in higher average costs for the insurer. Adverse selection can destabilize the insurance market if not properly managed, because it can lead to a situation where insurers raise premiums to compensate for the higher-than-expected costs associated with more high-risk individuals in the pool.

The other concepts mentioned do not accurately capture Jeremy's situation. Implied selection would refer to an assumption made by the insurer about the health status of applicants, while exposure reduction and risk avoidance deal with reducing the likelihood or impact of risk rather than the behavior related to obtaining insurance based on perceived personal risk.