Which of the following is an example of moral hazard?
A)Asad gets a life insurance policy to protect his family if he dies.
B)Chantelle works hard to improve her health, so she does not need to go to the doctor as often.
C)Jose goes to the doctor more often after he gets health insurance.
D)Bella gets an insurance policy with a higher deductible to save money.

Question

Quizplus · Accepted Answer

Moral hazard refers to the tendency for individuals to take more risks or engage in more risky behavior when they are protected by insurance. In this case, Jose is going to the doctor more often than he would have without health insurance, which is an example of moral hazard. Choices A, B, and D do not involve taking on more risk due to insurance protection.

Which of the Following Is an Example of Moral Hazard