(Solved):Many jurors assume the defendant has insurance coverage and therefor no harm is done by awarding the plaintiff damages. What are the moral hazards? What is the affect on insurance premiums on consu… View Answer…

 

Question

Many jurors assume the defendant has insurance coverage and therefor no harm is done by awarding the plaintiff damages. What are the moral hazards? What is the affect on insurance premiums on consumers?

 

EXPERT ANSWER

In this context a moral hazard is a conscious change in behavior due the knowledge that insurance is in effect. While it is sometimes done with nefarious intent (monetary benefit), it is also done by some well-intentioned

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