Which of the following is not a moral hazard?

A. Taking insurance at advanced age

B. A proposer with many dependents taking ins

C. When medical exam is done elsewhere

D. Proposal on another life without insurable interest

Answer: Option B

Solution(By Examveda Team)

A proposer with many dependents taking insurance is not a moral hazard. Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It arises when both the parties have incomplete information about each other.