Lindsey's auto-insurance company issued her a policy that required the installation of a devise that monitors her driving habits.Lindsey is confused because she had never gotten into an accident before she bought the insurance.The insurance company is protecting itself against

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The insurance company is protecting itself against moral hazard, which occurs when a person takes more risks because they do not bear the full consequences of their actions. By monitoring driving habits, the company aims to reduce risky behavior after the policy is issued.

Lindsey's Auto-Insurance Company Issued Her a Policy That Required the Installation