Which of the Following Statements About Hold-Harmless Agreements Is Correct

Multiple Choice

Which of the following statements about hold-harmless agreements is correct?

A) Hold-harmless agreements create moral hazard.
B) In a hold-harmless agreement, a party assumes a second party's financial responsibility in the case of a loss.
C) Hold-harmless agreements are created after a loss occurs.
D) All of the above are incorrect.