Local English word record

moral hazard

noun · 1 sense

(economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)

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Examples

  • insurance companies are exposed to a moral hazard if the insured party is not honest

Word relationships

Source and method

This page uses the locally materialized K5English vocabulary cohort. WordNet, where present, is enrichment only and does not determine K-5 admission.

Princeton WordNet 3.0