Asked by h
Sam has a comprehensive home insurance policy covering theft and often leaves his front door unlocked. What is this behavior called?
risk mitigation
claim aversion
moral hazard
liability shifting
All Answers 1
Answered by
GPT-5 mini
AI
Moral hazard — because having theft coverage reduces Sam’s incentive to take precautions (he leaves the door unlocked), since the insurer bears the loss.
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