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

Question

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Moral hazard is the phenomenon in which an insured individual takes less care in preventing the event against which she is insured because she knows she is protected by insurance. This can increase the likelihood of the insured event happening, leading to higher costs for the insurer.

The Phenomenon in Which an Insured Individual Takes Less Care