Monthly Archives: November 2015

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 One example is an outdated building situated in a business area with a high concentration of business and a … Continue reading

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Insurance 101 – Chapter 3 – Volume 4 – More on Moral Hazard

More on Moral Hazard Permitting double recovery might create a moral hazard by giving the insured an incentive to use less than reasonable care in preventing or avoiding a covered insurance loss which is the temptation created by a valued … Continue reading

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