Many people in the property and liability insurance industry complain about the “automobile problem.” The “automobile problem” consists of a series of interrelated problems. What factors have combined to produce a problem in the automobile insurance area?

Q: Explain the different between takaful and insurance.

A: Takaful is a new form of insurance product made as per as the principles of Islamic principles of…

Q: When a moral hazard problem exists for automobile driving, the marginal cost of driving (A) is…

A: This can be defined as a situation in economics where asymmetric information between buyers and…

Q: Which of the following practices mitigates moral hazard? I. II. III. A health insurance company's…

A: Moral hazard refers to the situation where one party (typically the insured) takes risks because…

Q: Suppose that there are equal numbers of good and bad used cars in the market. Good used cars are…

A: The market for used cars, also known as the market for lemons is an example of a market with…

Q: Potential solutions to sell a high-quality used car include • Selected: a. offering a warrantyThis…

A: Potential solutions to sell a high-quality used car include:a) offering a warrantyb) selling through…

Q: Misty is single and has chosen Plan Q. Misty has not used her health insurance yet this year.…

A: Below is the given information: The portion of the bill = $5000

Q: why

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…

Q: Which of the following unethical practices occurs when consumers are signed up and billed for…

A: Any behavior, action, or choice that goes against moral norms, beliefs, or principles is considered…

Q: With all the calls to de-fund police Kentucky town is the example of what can be done to reduce…

A: In economics, economic benefits refer to the positive impacts or advantages that arise from any…

Q: . discuss how agricultural insurance could help farmers improve farm activity.

A: The economics as a study is based upon the idea that the countries tend to have a limit to the…

Q: You have a prescription drug insurance plan with a $500 deductible, 25% coinsurance after the…

A: Deductible=$500 Coinsuarance=25% Out of pocket maximum= $1250 total bill=$2075

Q: 42. Your insured decides to install a recreation room in the basement of the house. Which one (1)…

A: A Homeowners Comprehensive Policy, also known as an HO3 policy is a type of homeowners insurance…

Q: You know that your cousin was responsible in breaking your neighbors window. Your neighbor is a…

A: An ethical dilemma is described as an issue in the process of decision-making between 2 possible…

Q: Which of the following best describes the term annual health insurance deductible?   A. the amount…

A: A deductible is a sum that a policyholder needs to pay before the insurance agency begins paying.…

Q: Nature of Insurance Insurance is a means to minimize the seriousness of a risk to an individual. A…

A: Insurance Insurance is a contract in which a person or business gets financial protection or payment…

Q: In Hayward, there are 100 people who want to sell their used cars. Everybody knows that 50 of these…

A: The objective of the question is to find out the price that buyers would be willing to pay for a…

Q: Pls help ASAP

A: For the first question, option C) is correct because some home insurance policies do offer coverage…

Q: Suppose there are only two kind of cars in the market for used cars: lemons and good cars. A lemon…

A: In the market for used cars, a well-known problem called "the market for lemons" can arise due to…

Q: Draw the market for risk, where consumers of insurance supply risk and insurance companies demand…

A: Demand: It refers to the goods and services that individuals prefer to buy in the market. The…

Q: George Akerloff focused the market for used cars and discussed an issue later generally called the…

A: Adverse selection is a market situation where both buyer and seller have different information about…

Q: Using an appropriate graph explain how tax exemption affects insurance coverage.

A: Tax exemption refers to some discount or a specific proportion of income become tax-free based on…

Q: When is a mortgage clause used in connection with insurance on a property? The insured lends money…

A: Insurance refers to a type of financial product intended to shield people and businesses from the…

Q: The marginal benefit of a healthcare=100-Q, and the marginal cost of the healthcare=40. If the…

A: Marginal profit (MB) in political economy suggests that the best quantity a shopper is caning to get…

Q: Why is it important to carry auto insurance? O To protect against the risk of a natural disaster O…

A: Auto Insurance:- Auto-insurance is a type of insurance that provide protection to the insured…

Q: An insurance binder is not valid unless the broker has: OA) a completed and signed application. OB)…

A: An insurance binder is not valid unless the broker has:Which coverage is included in an owner…

Q: Moral hazard is a problem that arises when which situation occurs? There is a risk of a "lemon."…

A: A Moral Hazard is a problem of behaving less carefully at the cost of giving the burden of risk to…

Q: The lower the deductible on an insurance policy, the higher the premiums.    True or False

A: The deductible is the amount that a policyholder pays before the insurer (the insurance company)…

Q: II. Pick any two (2) personal care product brands available in the market and answer the following…

A: I have chosen Colgate and Pantene shampoo as two personal care products brand available in the…

Q: Which of the following is an example of moral hazard? Group of answer choices A. Reckless drivers…

A: A moral hazard is a risk that is taken by one party while knowing that his or her act is protected…

Q: If you sell your DVD player on eBay you will be better informed about the quality of the product…

A: Asmmetric Information: Asymmetric information refers to a situation where one party involved in a…

Q: J is insured in an accident on K premises. K has a commercial general liability policy with a…

A: Definition: A Commercial General Liability (CGL) is a sort of insurance policy(protection…

Q: Which of the following coverages will protect the insured against drivers who have inadequate or…

A: When talking about different types of insurance coverage, they are based on different terms and…

Q: Explain the nature and consequences of asymmetric information in a market for used appliances.…

A: Asymmetric information: It refers to defective information. Specifically, it happens when one party…

Q: You sell bicycle theft insurance. If bicycle owners do not know whether they are high or low risk…

A: Individuals purchase insurance to cover themselves against the potential risk of loss. There are…

Q: Which of he following sections of an insurance contract limits coverage? A.Waiver of Premium…

A: An insurance contract is an agreement between two parties, one of whom is known as the insurer and…

Q: You backed over your neighbor's Harley Davidson, and you don't have insurance. Your neighbor is…

A: The rule that an offer may be revoked prior to acceptance is subject to the proviso that the offeror…

Q: 1)Describe an example of moral hazard that we may run into in the real world. Think of something…

A: Moral hazard in economics refers to a situation where one party takes risks because the potential…

Q: Why isn't healthcare just another good? A. Healthcare is an investment B. Healthcare suffers of…

A: The concept that depicts improvement or maintenance of health through diagnosis, treatment, or cure…

Q: Question 2: What are the two externalities that are associated with driving cars and trucks? Are…

A: An externality, also known as an external cost, is the term given to the phenomenon in which one…

Q: Blank 1 involve the practice of ethical theories or principles.

A: Because they are the viewpoints from which advice can be received along the journey to a decision,…

Q: Which of the following is NOT covered by homeowher's IHs O Burglary losses O Accidents on your…

A: The following problem has been answered as follows

Q: Which of the following is NOT an example of on-demand insurance? Which of the following is NOT an…

A: The insurance that allows consumers for purchasing coverage anywhere when the asset requiring…

Q: Tim exercises everyday and eats healthy. Cam is a couch potato and smokes. A health insurance…

A: The main information in the question: *Insurance company not able to differentiate the behaviour of…

Q: . “Drug use is a classic example of a victimless crime. Therefore it should not be prohibited.”…

A: Victimless crimes is a private crime and no other person or third party is affected.  An example…

Q: economic graphs for vouch insurance startup?

A: VOUCH insurance is a start-up working for providing loans to start-ups. It claims to be the fastest…

Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.