n NISM Certifications
NSM General NISM
Medium

What action may a life insurance company take to guard against moral hazard?

Practice question from IC 38 Mock Test 11 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Requiring policyholders to disclose their past medical history

  2. B

    Conducting background checks on policyholders' financial records

  3. Requesting the submission of a Moral Hazard Report by an official of the insurance company

    Correct answer

  4. D

    Offering additional coverage for risky activities like skiing expeditions

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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