Results for: moral-hazard

What is meant by a moral hazard?

There are actions that a company or person can partake in that would be considered a moral hazard by society in general. This would be actions such as offering or entering in to a contract under ill intentions of not… Full Answer

What are the disadvantages of reinsurance?

Among the know disadvantage of insurance is that it may enhance the Moral and Morale hazards in the society. Moral hazard refers to the situation where people become reckless or careless because they feel they are 'covered'. Morale hazard on… Full Answer