An insured who leaves a house unlocked and the keys in the car because 'insurance will cover it' is displaying which type of hazard?

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Multiple choice — select the best answer

APhysical hazard
BMorale hazard
CMoral hazard
DSpeculative hazard

✓ Correct answer: B. Morale hazard Morale hazard is carelessness or indifference to loss because the insured has coverage. Moral hazard, by contrast, involves deliberate dishonesty such as arson or fraud.

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Topic: Property Insurance

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An insured who leaves a house unlocked and the keys in the car because 'insurance will cover it' is displaying which type of hazard?

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