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In economics, moral hazard occurs when someone increases their exposure to risk when insured, especially when a person takes more risks because someone . Moral hazard is the risk that a party to a transaction has not entered into the contract in good faith, or has an incentive to take unusual business risks. Understand that moral hazard is the idea that a party protected in some way from risk will act differently than if they didn't have that protection. Learn how it.

Definition: Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur. Moral hazard happens when somebody has an incentive to take risks that others will pay for. It works with insurance, finances, and other areas. Definition of Moral Hazard - the concept that individuals alter their behaviour when their risk-taking is borne by others. Causes of moral hazard.

Definition of moral hazard. In insurance, the chance that the insured will be more careless and take greater risks because he or she is protected, thus increasing. The term "moral hazard" when interpreted literally has a strong rhetorical tone, which has been used by stakeholders to influence public attitudes to insurance.