moral hazard

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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 title of my class at Emory University this autumn is "The Ethics of Risk" Basically, it is a philosophical look at risk management, as it focuses on a variety of risks to society, including legalism and the morale hazards, absolutism, the environment, and other ethical issues from somewhat of an enterprise risk management approach.
The actions of an individual who disregards or is careless of a given peril is a morale hazard.
Where the occupier of a building situated in a floodplain uses the basement to store valuable items, not realizing that the building has been flooded in the past, this presents a morale hazard.