Ted Purchased a Comprehensive Insurance Policy for His Car

question 61

Multiple Choice

Ted purchased a comprehensive insurance policy for his car. Which of the following is an example of moral hazard?

• A) Because of his insurance coverage, Ted avoids driving when the roads are icy.
• B) Because of his insurance coverage, Ted no longer locks his car doors.
• C) Because of his insurance coverage, Ted uses a designated driver for the nights he spends bar hopping.
• D) Because of his insurance coverage, Ted replaced his worn-out tires with Michelin tires.

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