In the Context of Insurance,moral Hazard Refers To

question 24

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 in 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:

Mission Statement

A short statement defining an organization's purpose and primary objectives, guiding its internal decision-making.

Employee Retention

The strategies and practices employed by organizations to keep their employees from leaving to work elsewhere, focusing on improving job satisfaction, career development, and work-life balance.

Motivation

The psychological processes that arouse, direct, and maintain human behavior towards attaining some goal.

Social Capital

The networks, relationships, and norms that contribute to societal cooperation and collective well-being.