Moral Hazard Often Arises in the Case of Insurance Because

Moral hazard often arises in the case of insurance because

A) insurance companies have no incentive to investigate fraudulent claims.
B) people generally underestimate the amount of insurance coverage needed.
C) people who are in the most need of insurance have the most trouble obtaining insurance coverage.
D) insured people will not take sufficient care to reduce risks because the private benefit of reducing risks exceeds the private cost of reducing risks.
E) insured people will not take sufficient care to reduce risks because the private cost of reducing risks exceeds the private benefit of reducing risks.