Final answer:
The item found on the Declaration Page of an insurance policy is the deductible. This feature, along with copayments and coinsurance, factors into reducing moral hazard by giving policyholders a financial stake in the prevention of losses or unnecessary claims.
Step-by-step explanation:
On the Declaration Page of an insurance policy, you will typically find the deductible. A deductible is the amount that the policyholder is responsible for paying out-of-pocket before the insurance coverage kicks in. The Declaration Page outlines key details of the policy such as the insured's name, the policy term, coverage limits, and the deductible amount.
It's also worth noting that deductibles, along with copayments and coinsurance, help reduce moral hazard in insurance policies. Moral hazard refers to the idea that insurance can sometimes lead to riskier behavior because the financial responsibility for potential losses is shared with the insurer. By requiring policyholders to pay deductibles, copayments, or coinsurance, insurers ensure that the policyholder also has a financial stake in preventing losses or seeking unnecessary claims.