What is the Definition of Moral Hazard?

What is the Definition of Moral Hazard?

The possibility that a person may act dishonestly in an insurance transaction.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Annuity?

What is the Definition of Moral Hazard?

What is the Definition of Moral Hazard?

You can find random definition and meaning of insurance terms below:

Meaning of Annuity Purchase Rate in Insurance Terms

The cost of an annuity based on such factors as the age and gender of the contract owner.

Meaning of Antiselection in Insurance Terms

The tendency of individuals who suspect or know they are more likely than average to experience loss to apply for or renew insurance to a greater extent than people who lack such knowledge of probable loss. Also known as adverse selection and selection against the company.

Meaning of Antitrust Laws in Insurance Terms

Laws that prohibit companies from working as a group to set prices, restrict supplies or stop competition in the marketplace. The insurance industry is subject to state antitrust laws but has a limited exemption from federal antitrust laws. This exemption, set out in the McCarran-Ferguson Act, permits insurers to jointly develop common insurance forms and share loss data to help them price policies.

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