moral hazard

noun
  1. Insurance. an insurance company's risk as to the insured's trustworthiness and honesty.
  2. the risk that an individual or organization will act irresponsibly or recklessly if protected or exempt from the consequences of an action.

Origin of moral hazard

First recorded in 1915–20
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2018

British Dictionary definitions for moral hazard

moral hazard

noun
  1. insurance a risk incurred by an insurance company with respect to the possible lack of honesty or prudence among policyholders
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012