FT MarketWatch

Moral hazard

The Risk that the presence of a Contract will affect on the behavior of one or more parties. The classic example is in the Insurance industry, where Coverage against a loss might increase the risk-taking behavior of the Insured.

Related Terms: 10 Class, Coverage, Contract, Cover, Insurance, Insured, Industry, Inc., Risk, SIC
Other Related Pages: Category: Insurance Starting With: M
Additional Related Terms: 10-K, Above par, Accrual of discount, Amortization of premium, At par, All or any part, At best, At call, Adjustable life insurance, All-risks coverage