Question

What is "moral hazard" in the context of life insurance?

a.

A change in the policyholder's occupation

b.

A change in the policy's premium

c.

A change in the policy's beneficiaries

d.

A change in the policyholder's behavior that increases the chance of a loss

Answer: (d).A change in the policyholder's behavior that increases the chance of a loss Explanation:Moral hazard refers to a change in the policyholder's behavior that might increase the chance of a loss after purchasing a life insurance policy.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is "moral hazard" in the context of life insurance?

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!