[amp_mcq option1=”Taking insurance at advanced age” option2=”A proposer with many dependents taking ins” option3=”When medical exam is done elsewhere” option4=”Proposal on another life without insurable interest” correct=”option4″]<\/p>\n
The correct answer is: D. Proposal on another life without insurable interest<\/strong><\/p>\n Moral hazard is a situation where an individual’s behavior changes in a way that increases the risk of loss to an insurer, due to a reduction in the individual’s incentive to avoid losses.<\/p>\n In the context of insurance, moral hazard can occur when an individual takes out insurance on an asset that they do not have an insurable interest in. For example, if an individual takes out life insurance on someone else’s life, without having any financial or emotional stake in that person’s death, they may be more likely to take actions that could increase the risk of that person’s death, such as encouraging them to engage in risky behavior.<\/p>\n The other options are not examples of moral hazard.<\/p>\n [amp_mcq option1=”Taking insurance at advanced age” option2=”A proposer with many dependents taking ins” option3=”When medical exam is done elsewhere” option4=”Proposal on another life without insurable interest” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32604","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n\n