General Insurance
An insured has been careless about locking the premises since buying coverage. Which kind of hazard is that?
Answer and explanation
Answer: B. A morale hazard is indifference to loss arising because the insured is covered. A moral hazard involves dishonesty or an intent to cause loss, a physical hazard is a tangible condition of the property, and speculative risk is one carrying a chance of gain and so is not insurable.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, physical, moral, and morale hazard
More general insurance questions
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- Which need is customarily met by a government insurer rather than a private one?
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