Answer-What are moral hazards in underwriting?

Moral hazards refer to the increased risk of loss due to the insureds dishonest or careless behavior. Examples include intentionally causing a loss to collect insurance proceeds or failing to take reasonable precautions to prevent a loss.

Question

What are moral hazards in underwriting?

A Intangible human aspects of a risk, such as carelessness or dishonesty.

B Tangible factors arising from the nature of the risk itself.

C Financial condition of the insured.

D The insured's past claims history.

E None of the above

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What are moral hazards in underwriting?

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