Monthly Archives: November 2015

Insurance 101 – Chapter 3 – Volume 11 – Types of Morale Hazard

Types of Morale Hazard Indications of a Morale Hazard are varied and important for every underwriter and claims person to understand. The video will discuss some of those indications of a Morale Hazard. The following video was adapted from my … Continue reading

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Insurance 101 – Chapter 3 – Volume 10 – The Morale Hazard

The Morale Hazard The “morale hazard” is the increase in uncertainty brought about by the indifference of a policyholder. Because of this indifference the policyholder may neglect ordinary precautions to protect against loss. The result is an increase in the … Continue reading

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Insurance 101 – Chapter 3 – Volume 9 – Misrepresentation or Concealment

Misrepresentation or Concealment An insurance company is entitled to determine for itself what risks it will accept, and therefore to know all the facts relative to the applicant’s physical condition. It has the unquestioned right to select those whom it … Continue reading

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Insurance 101 – Chapter 3 – Volume 8 – Underwriting Against Moral Hazards

Underwriting Against Moral Hazards Policy provisions can be used to control the risk of the moral hazard, without refusing the risk in its entirety. Built-in provisions of the policies like the “fraud and  misrepresentation” conditions work to deter losses by … Continue reading

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Insurance 101 – Chapter 3 – Volume 7 – More Indicators of a Moral Hazard

More Indicators of a Moral Hazard Underwriters should be concerned about poor employee relations that result in a strike at each contract negotiation. The threat of damage during a strike is a risk if employees could riot and set fire … Continue reading

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Insurance 101 – Chapter 3 – Volume 6 – Other Indicators of a Moral Hazard

Other Indicators of a Moral Hazard Bankruptcy, tax evasion complaints, fraud, or a record of paying debts late should all be taken into account when the underwriter is weighing the risks of insuring an applicant. If the adjuster learns that … Continue reading

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Insurance 101 – Chapter 3 – Volume 5 – Lack of Self Interest

Lack of Self Interest There are cases where the ownership of the property is less desirable than the proceeds from insurance. One example is an outdated building situated in a business area with a high concentration of business and a … Continue reading

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