A term used to describe a subjective hazard that tends to increase the probable
frequency or severity of loss due to an insured peril. Morale hazard, as contrasted
with moral hazard, does not imply a propensity to cause a loss but implies
a certain indifference to loss simply because of the existence of insurance.
For example, an insured's attitude may be indifferent if a loss occurs because
they have insurance.