The Phenomenon in Which an Insured Individual Takes Less Care

question 38

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

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Definitions:

Benin Ivory

Ivory sculptures and artifacts from the Kingdom of Benin (modern-day Nigeria), reflecting the wealth, craftsmanship, and artistry of the Benin people, especially from the 15th century onwards.

Ife Ruler

Refers to the kings or religious leaders of Ife, an ancient Yoruba city in Nigeria, known for its unique art, particularly lifelike bronze and terracotta sculptures.

Zinc-Brass

An alloy predominantly made of copper and zinc, used in a variety of decorative and practical applications for its resilience and finish.

Terracotta

A type of earthenware, a clay-based unglazed or glazed ceramic, where the fired body is porous, commonly used for sculptures and pottery.