Which of the following is NOT an example of moral hazard?
A) People take poor care of their health because they have health insurance.
B) People drive recklessly because they have medical insurance.
C) People don't lock their doors because they have theft insurance.
D) All of the above are examples of moral hazard.

Question

Quizplus · Accepted Answer

Moral hazard occurs when a person takes more risks because they know they are protected, often by insurance. All the examples provided (A, B, C) illustrate situations where individuals might engage in riskier behavior because they have insurance coverage, which is the essence of moral hazard.

Which of the Following Is NOT an Example of Moral