All of the following are benefits to society that result from insurance EXCEPT
A)less worry and fear.
B)elimination of moral hazard.
C)indemnification for loss.
D)loss prevention.

Question

Quizplus · Accepted Answer

Insurance does not eliminate moral hazard, which refers to the increased risk-taking behavior that insured individuals or entities may exhibit due to their knowledge that they are protected from financial loss by insurance. Insurance may actually increase moral hazard if policyholders become less careful or cautious with their behavior because they know they are insured. The other choices are all benefits of insurance to society.

All of the Following Are Benefits to Society That Result