English
English version

moral hazard

From Longman Business Dictionary
Related topics: Insurance
moral hazardˌmoral ˈhazard [uncountable] INSURANCE the idea that some people or companies are a bigger insurance risk than others, because of their past behaviour or their present situation. For example, someone who has spent time in prison is more likely to make a dishonest claimCertain groups must pay higher premiums, to account for the moral hazard problem. hazard
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