Types of Hazards & Fraud Flashcards
1
Q
what are the different types of Hazards?
A
Moral
morale
Physical
Legal
2
Q
Moral hazard
A
conscious acts committed with a hope to defraud insurance
fraudulent intention
3
Q
Morale hazard
A
when insured acts differently taking in comfort they know insurance will take care of it
4
Q
Physical Hazard
A
physical condition that increases the chance of loss
5
Q
Legal hazard
A
increase chance of loss due to legal action
6
Q
Fraud
A
Decieving an insurer to profit from an insurance policy
7
Q
what are the two types of fraud?
A
hard and soft
8
Q
Hard fraud
A
deliberately planning or faking a loss
9
Q
soft fraud
A
exaggerating a claim to get more from insurance
