In the Context of Insurance, Moral Hazard Refers To

question 72

Multiple Choice

In the context of insurance, moral hazard refers to:

• A)the tendency for people to behave in a riskier way after they have acquired insurance.
• B)the tendency for high-risk individuals to seek out more insurance than low-risk individuals.
• C)when people organize themselves into a group to collectively absorb the cost of the risk faced by each individual.
• D)when risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual.

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Definitions:

Form 940

A tax form used in the United States to report annual Federal Unemployment Tax Act (FUTA) tax details to the Internal Revenue Service (IRS).

Form 941

The IRS tax form used by employers to report quarterly federal income tax withheld and Social Security and Medicare taxes.

Weekly Timesheet

A record used to detail the number of hours worked by an employee during a specific week, often used for payroll purposes.

Billable

Charges or fees that can be invoiced to a client or customer, especially for time or services rendered.