The Phenomenon in Which an Insured Individual Takes Less Care

question 20

Multiple Choice

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

• A) foolish behaviour.
• B) adverse selection.
• C) moral hazard.
• D) double coincidence of wants.
• E) nondiversifiable risk.

---

Definitions:

Career Choice

The process of deciding on a path or specific occupation to pursue as one's profession.

Peer Group

A group of individuals, usually of similar age, background, or social status, who associate with each other and may exert influence on one another.

Common Interest

A shared concern or passion among a group of individuals, which often serves as a basis for communal activities or discussions.

Reframing

The process of changing the conceptual or emotional setting or viewpoint regarding a situation, thereby altering its meaning or impact.