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Ace The 75 Hour Broker Pre Licensing Practice Exam

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What type of hazard involves an individual's careless attitude or reckless behavior that increases the chance of a loss?
Correct Answer:
Morale hazard
Explanation:
A morale hazard arises from a state of mind or careless attitude (e.g., driving recklessly because one is insured), unlike a moral hazard which involves deceit or fraud.

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