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Which statement best explains Moral hazard?

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Question ID #26637

Correct Answer: B. Change in behavior or risk arising because protection from loss exists

Question: Which statement best explains Moral hazard?

A. Principle by which multiple insurers sharing the same risk contribute to an indemnity loss

B. Change in behavior or risk arising because protection from loss exists

C. Consideration paid for insurance coverage

D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms

Correct Answer: B. Change in behavior or risk arising because protection from loss exists

Which statement best explains Moral hazard? - MCQ Explanation

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Correct answer: B. Change in behavior or risk arising because protection from loss exists