If an individual causes a loss intentionally, we would say that person is a:
A) careful person
B) physical hazard
C) moral hazard
D) risk manager

Question

Quizplus · Accepted Answer

A moral hazard is when an individual knowingly takes actions or behaves in a way that increases the likelihood of a loss occurring, such as committing fraud or intentionally causing damage or harm. A careful person would not intentionally cause a loss, and a physical hazard refers to a condition or object that can cause a loss, but not intentional actions by an individual. A risk manager may be responsible for identifying and mitigating the effects of moral hazards, among other risks.

If an Individual Causes a Loss Intentionally, We Would Say