if an insurance company charges a fixed contract fee plus the actuarially fair premium per dollarensured then consumers will never buy full insurance Is this statement correct

No, the statement is not necessarily correct. It depends on the specific context and preferences of the consumers.

In general, consumers may choose to buy full insurance if they perceive the benefits of having complete coverage to outweigh the costs. While the fixed contract fee adds an additional cost, if the actuarially fair premium per dollar insured is reasonable and provides significant protection against potential losses or risks, consumers may still opt for full insurance.

However, it is possible that some consumers may choose not to buy full insurance if they believe the actuarially fair premium is too high compared to the potential risks they face. In such cases, consumers may prefer to take on some level of risk and opt for partial insurance or no insurance at all.

Therefore, the decision to buy full insurance or not depends on individual consumer preferences, risk tolerance, and the perceived value of the insurance coverage relative to its costs