Insurers reduce the chance of a moral hazard by including a __________ on a policy and refusing to insure intentional torts and criminal activity.

Question

Quizplus · Accepted Answer

Insurers include a deductible on a policy to reduce the chance of moral hazard by making the insured party responsible for a portion of the loss, thereby encouraging them to act in a more risk-averse manner.

Insurers Reduce the Chance of a Moral Hazard by Including