The case where people purposely act in a careless way, for example, driving recklessly because they are insured, is called

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Moral hazard is the situation where individuals have the incentive to take risks because they do not bear the full costs of those risks themselves. In the case of reckless driving, the driver is insured and therefore does not bear the full cost of any accidents that may result from their reckless behavior. This creates a situation where the driver has an incentive to act in a careless way, leading to moral hazard.

The Case Where People Purposely Act in a Careless Way