moral hazard

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Related to Moral hazards: Adverse selection, Physical Hazards

moral hazard

n.
1. The risk to an insurance company that the holder of a policy will destroy the insured property in order to collect the monetary reimbursement available under the policy.
2. The risk that an individual or organization will behave recklessly or immorally when protected from the consequences.

moral hazard

n
(Insurance) insurance a risk incurred by an insurance company with respect to the possible lack of honesty or prudence among policyholders
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.moral hazard - (economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance); "insurance companies are exposed to a moral hazard if the insured party is not honest"
economic science, economics, political economy - the branch of social science that deals with the production and distribution and consumption of goods and services and their management
endangerment, hazard, jeopardy, peril, risk - a source of danger; a possibility of incurring loss or misfortune; "drinking alcohol is a health hazard"
References in periodicals archive ?
The post Moral hazards in banking may prove costly for Cyprus, DISY lawmaker warns appeared first on Cyprus Mail .
While these findings offer valuable insight into understanding the influence of one contextual factor on entrepreneurial resources, it is important to further the contextual examination of resource accumulation by asking whether the relational dimension of social capital further specifies the extent to which family-related moral hazards proliferate and examining what strategic responses can be taken to mitigate the dysfunctional outcomes associated with a kinship network while also helping to secure value capture and creation.
Talk of moral hazards has been around since at least as long as the modern insurance industry, which some date as far back as 1662.
We used the bootstrap covariance matrix for the means and medians of moral hazards to perform Wald tests for equality.
com's brand new guide to data backup software, covers these moral hazards and suggests selection criteria to keep in mind which address these hazards.
cannot be trusted to minimize moral hazards on their own.
David Day discusses the moral hazards facing writers critical of Australia's foreign policy in the Middle East: 'Where are the writers and where are the books that might provide alternative foreign policy directions as our troops get sucked into far-off civil wars?
While you couldn't run a neighborhood deli the way we Americans pay--or, more to the point, don't pay--for our government, few of us ever consider the long-term moral hazards hidden in such short-term fiscal profligacy.
With a disease like Alzheimer's, the moral hazards crop up at every turn.
People who are worried about the moral hazards of Social Security and other forms of government help should be trying to clamp down on inherited wealth as well.
This in itself creates other moral hazards, of course, and private sector Indonesian debtors would have to share some of the burden in the form of debt-equity swaps, nationalization, and so on if they are to benefit from the scheme.
Permitting the commercial marketplace to minimize moral hazards is one way to improve business efficiency.