Question 1007 of 303 · California Life-Only Agent Exam
An applicant intentionally overstates the value of belongings in order to collect more on a claim. This is an example of which hazard?
Exactly one answer is correct.
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Correct answer to question 1007
- A: Moral hazard
Explanation
Moral hazard is a dishonest tendency that increases the chance of loss or inflates a claim. Morale hazard is indifference or carelessness, not intentional dishonesty.
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