Moral hazard refers to the concept that the existence of insurance coverage provides an incentive for insured individuals to secure and use coverage for a known condition.

Name: Moral hazard refers to the concept that the existence of insurance coverage provides an incentive for insured individuals to secure and use coverage for a known condition.
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Question

Quizplus · Accepted Answer

Moral hazard refers to the situation where the insured party has an incentive to take more risks because they are insured.

Moral Hazard Refers to the Concept That the Existence of Insurance