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The factor which increases the possibility of loss that emanates from the insured attitude is?

Insurance
WAEC 2017

The factor which increases the possibility of loss that emanates from the insured attitude is?

  • A. physical hazard
  • B. moral hazard
  • C. uninsured peril
  • D. excepted peril
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Correct Answer: Option B
Explanation

moral hazard occurs when someone increases their exposure to risk when insured, especially when a person takes more risks because someone else bears the cost of those risks.

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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 127076
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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WAEC offline past questions - with all answers and explanations in one app - Download for free
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WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
WAEC offline past questions - with all answers and explanations in one app - Download for free
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WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now