Which of the following is a problem of moral hazard? - ProProfs Discuss
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Which of the following is a problem of moral hazard?



A. A lender cannot distinguish good risk from bad risk borrowers
B. An individual who purchases auto insurance begins to leave his or her keys in the car while running into a store
C. Life insurance companies offer an average premium to smokers and non-smokers so they do not have to have two different premiums
D. An auto insurance company charges higher premiums to younger drivers than what they charge to older drivers

This question is part of midterm 2
Asked by Stlepin, Last updated: May 22, 2020

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stlepin

Stlepin

Answered Aug 17, 2018

An individual who purchases auto insurance begins to leave his or her keys in the car while running into a store
 

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