Which policy is more likely to create moral hazard problem

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Reference no: EM13902724

An insurance company is considering issuing three types of fire insurance policies:

(i) complete insurance coverage,

(ii) complete coverage above and beyond a $10,000 deductible, and

(iii) 90 percent coverage of all losses. Which policy is more likely to create moral hazard problems?

Reference no: EM13902724

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