This Concept Regularly Arises in Insurance Markets

question 167

Multiple Choice

This concept regularly arises in insurance markets. It is described as a situation in which a person buys insurance against some risk and subsequently takes actions that increase the risk.

• A)Moral Hazard.
• B)Insurance Premium Imbalance.
• C)Reckless Theory.
• D)Asymmetric Information.
• E)None of these.

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Definitions:

Annuity

A guaranteed retirement income.

Property Insurance

Insurance coverage that provides protection against most risks to property, such as fire, theft, and some weather damage.

Valuable Artwork

Works of art that possess significant monetary, cultural, or historical value.

Legal Implications

The potential legal consequences or effects arising from certain actions or decisions.