_____ is one reason that insurance companies have difficulty predicting future claims.

Name: _____ is one reason that insurance companies have difficulty predicting future claims.
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Question

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Moral hazard occurs when the behavior of the insured party changes in a way that raises costs for the insurer after the policy is issued. For example, knowing they are covered, an individual might take more risks, leading to more claims than the insurer anticipated.

_____ Is One Reason That Insurance Companies Have Difficulty Predicting