Which of the following is not a moral hazard?
A
Taking insurance at advanced age
B
A proposer with many dependents taking ins
C
When medical exam is done elsewhere
D
Proposal on another life without insurable interest
Correct Answer: A proposer with many dependents taking ins
A proposer with many dependents taking insurance is not a moral hazard. 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 the cost. It arises when both the parties have incomplete information about each other.