223k views
0 votes
The insurer may suspect that a moral hazard exists if the policyholder:______.

a. is not honest about his health on an application for insurance.
b. is prone to depression.
c. is indifferent to activities that may be dangerous.
d. always drives over the speed limit.

User Vabanagas
by
5.4k points

1 Answer

5 votes

Answer:

a. is not honest about his health on an application for insurance.

Step-by-step explanation:

The moral hazards refer to the hazard that arises when the applicants do not tell the truth at the time of filling the application form for the insurance or in the past they claimed some amount which is totally fraud against to an insurer

So in case when the insurer may suspect whether there is an existence of moral hazard so the honesty regarding with the health for insurance should be taken as relevant pant

Therefore the option a is correct

User Stevenpcurtis
by
4.9k points