____________is the problem of preventing you from acting opportunistically after buying insurance
A)Moral hazard
B)Adverse selection
C)Decision making
D)None of the above

Question

​____________is the problem of preventing you from acting opportunistically after buying insurance
A)​Moral hazard
B)Adverse selection
C)Decision making
D)​None of the above

Quizplus · Accepted Answer

Moral hazard is the problem that arises when people act more recklessly or take on more risk after purchasing insurance because they feel protected. This can lead to increased claims and higher premiums, making it difficult for insurance companies to operate sustainably.

​____________Is the Problem of Preventing You from Acting Opportunistically After

____________Is the Problem of Preventing You from Acting Opportunistically After