Louisiana P&C Adjuster Practice Exam

What type of hazard is Ronald's forgetfulness that leaves his car windows open?

1. Physical hazard

2. Morale hazard

3. Intentional hazard

4. Operational hazard

The correct answer is: Morale hazard

Ronald's forgetfulness that leaves his car windows open exemplifies a morale hazard. Morale hazards arise from an individual's carelessness or reckless behavior regarding property or activities they are insured against. This type of hazard is often linked to attitudes of indifference about loss, leading to a greater likelihood of losses occurring because the insured party is not taking adequate precautions or care. In this case, Ronald's forgetfulness represents a lack of concern for his belongings—leaving the car windows open could increase the risk of theft or damage. His actions reflect a mentality that makes loss more likely, thus fitting the definition of a morale hazard perfectly. It is important to recognize that morale hazards are related to human behavior rather than physical conditions or intentional actions.