Question

which situation best represents a moral hazard? 1 point slippery floors at work chronic illness intentionally setting a fire to collect insurance money bald tires clear selection which of the following best describes risk retention? 1 point buying insurance ignoring risk accepting the financial consequences of loss eliminating risk clear selection

Explanation:

For the first question: Moral hazard refers to a party taking intentional risky or unethical actions because they do not bear the full cost of the consequences. Intentionally setting a fire to collect insurance fits this definition, as the actor exploits insurance coverage for gain. The other options are physical hazards or pre-existing conditions, not moral hazards.
For the second question: Risk retention means an individual or entity accepts and bears the financial costs of potential losses themselves, rather than transferring the risk (like buying insurance) or avoiding it.

Answer:

1. intentionally setting a fire to collect insurance money
2. accepting the financial consequences of loss