The phenomenon in which an insured individual takes less care in preventing the event against which he or she is insured is an example of

Question

Quizplus · Accepted Answer

Moral hazard occurs when an insured individual takes less care in preventing the event against which he or she is insured because he or she knows that any losses will be covered by insurance. This behavior increases the likelihood of a loss occurring and can lead to higher insurance premiums.

The Phenomenon in Which an Insured Individual Takes Less Care