In the Context of Insurance, Moral Hazard Refers To

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 into 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.