The factor which increases the possibility of loss that emanates from the insured attitude is?

Answer Details

The factor which increases the possibility of loss that emanates from the insured's attitude is moral hazard. Moral hazard refers to the situation where an individual is less likely to take precautions to avoid a loss because they are insured against that loss. In other words, the presence of insurance can change the behavior of the insured, leading them to take greater risks than they would if they were uninsured. This can increase the possibility of loss, as the insured may engage in activities or behaviors that increase their exposure to risk. For example, an insured person may be more likely to drive recklessly if they have auto insurance, as they know that their insurance will cover any damages. This is why insurance companies often take steps to mitigate the effects of moral hazard, such as by requiring deductibles or imposing limits on coverage.