moral hazard

noun
|Updated on: 25 Jul 2018

Definition of moral hazard

: the possibility of loss to an insurance company arising from the character or circumstances of the insured

Recent Examples of moral hazard from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'moral hazard.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of moral hazard

1881

in the meaning defined above

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Law Dictionary

moral hazard

noun

legal Definition of moral hazard

1 : the possibility of loss to an insurance company (as by arson) arising from the character or circumstances of the insured
  • deductibles decrease moral hazard
2 : the likelihood of investors to take greater risks because of the knowledge that losses incurred as a result of those risks will be covered by another (as a government)

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having an air of easy unconcern

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