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What is the primary characteristic that distinguishes moral hazard from other types of hazards?
  • a)
    It results from dishonesty or unethical behavior
  • b)
    It involves physical conditions increasing the likelihood of loss
  • c)
    It is caused by a specific event or peril
  • d)
    It arises from legal regulations
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the primary characteristic that distinguishes moral hazard fro...
Moral hazard is characterized by losses resulting from dishonesty or unethical behavior. It often occurs when individuals or entities take advantage of insurance without taking proper precautions to prevent losses.
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