Suppose Dave Drives More Recklessly When He Has Car Insurance

question 70

True/False

Suppose Dave drives more recklessly when he has car insurance than when he does not have car insurance. This is an example of the moral hazard problem associated with insurance.​

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Definitions:

Antisocial Conduct

Behavior that is hostile, aggressive, or damaging to societal relationships and rules.

Mental Disorder

A condition characterized by disturbances in thought, behavior, or emotions, leading to significant distress or impairment.

Diminished Capacity

A legal defense where a defendant may acknowledge they committed a crime but argue that due to mental impairment, they should not be fully held responsible.

Mentally Ill

A term referring to individuals who experience a wide range of mental health conditions that affect mood, thinking, and behavior.