Life & Health · Chapter 2 · Perils, Losses & Hazards
Morale Hazard
Definition
Loss is more likely because of the insured's careless indifference — an unconscious "I don't care, it's insured" state of mind. Unintentional.
Example
A homeowner who never changes smoke-detector batteries; skipping preventive care because you're covered.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms