Which term refers to the effect of personal attributes on a person's insurability?

The concept of "moral hazard" directly relates to how personal attributes influence an individual's insurability. In insurance, moral hazard refers to the risk that an insured party might behave differently or less cautiously because they are protected by insurance. For example, if a person knows they are covered for certain risks, they may take actions they otherwise wouldn’t, due to the belief that the insurance will cover potential losses.

This term encompasses various aspects of an individual's character, behaviors, and lifestyle choices, which can impact their likelihood of filing claims or engaging in risky behavior. Insurers evaluate these personal attributes to determine the level of risk associated with insuring that individual, which, in turn, affects their underwriting processes and premium calculations.

Other terms listed, such as health risk, social hazard, and reputational risk, while related to the overall assessment of risk in insurance, do not specifically address the impact of personal attributes on insurability in the way moral hazard does. Health risk primarily refers to the probability of a loss resulting from a health condition, social hazard relates to societal influences affecting risk, and reputational risk concerns potential damage to a person's reputation. Each term describes important aspects of risk but does not encapsulate the personal behavior aspect that moral hazard effectively covers