Q918
Which of the following is not a moral hazard?
A.
Taking insurance at advanced age
B.
A proposer with many dependents taking ins
AnswerC.
When medical exam is done elsewhere
D.
Proposal on another life without insurable interest
Answer: Option B
Solution
Answer: Option B
Solution:
A proposer with many dependents taking insurance is not a moral hazard. Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It arises when both the parties have incomplete information about each other.