One type of moral hazard isex-ante. Ex-ante hazard defines the behavioral change of a policyholder before an event occurs. For example, suppose Aang, a professional cliff diver, does not have health insurance. They go through their career without doing the dangerous dives that could send them...
Morale hazard is an increase the probable frequency or severity of loss due to an insured peril that arises from an indifferance on the part of the insured to the loss occurring.
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 ...