The phenomenon in which an insured individual takes less care in preventing the event against which he or she is insured is an example of

Question

Quizplus · Accepted Answer

Moral hazard is the phenomenon where an insured person may take greater risks or behave recklessly because they know they are insured against the potential negative consequences. This can lead to increased losses for the insurer and contribute to higher premiums for all policyholders.

The Phenomenon in Which an Insured Individual Takes Less Care