In the Case of an Insurance Policy,________ Occurs When the Existence

question 81

Multiple Choice

In the case of an insurance policy,________ occurs when the existence of insurance encourages the insured party to take risks that increase the likelihood of an insurance payoff.

• A) moral hazard
• B) opportunism
• C) adverse selection
• D) shirking

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Definitions:

Employment References

Recommendations provided by former employers or colleagues that attest to an individual's skills, character, and performance in previous job roles.

Objectivity and Candour

The practice of being impartial and honest in expression, avoiding bias, and straightforward communication.

Employee Turnover

The rate at which employees leave a company and are replaced by new hires, considered as an indicator of workplace satisfaction and stability.

Employment Tests

Devices that assess the probable match between applicants and job requirements.