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JamesLu JamesLu
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6 years ago
Curt borrowed money from a bank to purchase a fishing boat. He purchased property insurance on the boat. Curt had difficulty making loan payments because he did not catch many fish, and fish prices were low. Curt intentionally sunk the boat, collected from his insurer, and paid off the loan balance. This scenario illustrates the problem of
A) adverse selection.
B) moral hazard.
C) nondiversifiable risk.
D) attitudinal hazard.
Textbook 
Principles of Risk Management and Insurance

Principles of Risk Management and Insurance


Edition: 12th
Authors:
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wrote...
6 years ago
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JamesLu Author
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6 years ago
Thanks
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