When an insured party engages in riskier behavior because he relies on insurance to cover his liability or loss, this is known as a __________.

Name: When an insured party engages in riskier behavior because he relies on insurance to cover his liability or loss, this is known as a __________.
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Question

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Moral hazard occurs when an individual or entity is more likely to take risks because the negative consequences of those risks are mitigated by insurance or another form of protection.

When an Insured Party Engages in Riskier Behavior Because He