The Phenomenon in Which an Insured Individual Takes Less Care

question 30

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

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Definitions:

Budget Period

A specific time frame for which financial planning, expenditure, and allocations are made and tracked.

Monthly

Pertains to something occurring every month or related to a particular month.

Obtainable Goal

A target or objective that is realistically achievable within a given timeframe or with available resources.

Organizational Structure

The system that outlines how certain activities are directed to achieve the goals of an organization, including rules, roles, and responsibilities.