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moral hazard

NOUN
  1. (economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)
    insurance companies are exposed to a moral hazard if the insured party is not honest

How To Use moral hazard In A Sentence

  • Then adverse selection and moral hazard have become the key problems of venture investment.
  • In other words, lower the amount insured below the actual value of the house to prevent moral hazard.
  • But there are plenty of services that are not catastrophic in nature, and we should not finance them as they contribute to moral hazard, overutilization, and drive up healthcare costs. Wonk Room » What Does The Hospital Deal Mean For Health Care Reform?
  • However, on the condition of the manager market failure in China, managers' choice hazard and moral hazard will arise when managers from outside market enter the family controlled enterprises.sentence dictionary
  • However, he accepted that, if the excess of the insured value over the market value were so great that it suggested a moral hazard, the underwriter would not insure the vessel.
  • While they were struggling to bring the banking crisis under control, they found themselves simultaneously having to persuade a sceptical governor of the necessity of rescuing the clapped-out Northern Rock, and eventually much of the rest of the banking sector, while he was still lecturing the City about "moral hazard". Can you overrule the King of Threadneedle Street?
  • This behavior is termed moral hazard . In practice, not all risks can be insured, and the insurability of a given risk depends on a number of factors.
  • The business end of Hanky Panky Paulson’s bazooka is glowing red hot as it continues to fire round after round of high explosive moral hazard contains an up to 85 billion dollar, two-year bridge loan from the Fed to the world’s largest insurer, AIG, to be guaranteed by the US taxpayer via the US Treasury. All Roads Lead To Hyperinflation | Disinformation
  • However, we saw that problems of adverse selection and moral hazard would inhibit the organization of private insurance markets.
  • But moral hazard reduces the ability to reallocate risk among different economic agents.
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