Lewis's behavior of being careless with electronics in his store is known as what?

The correct answer, in this case, refers specifically to moral hazard, which is a concept in insurance and risk management that describes a situation where a person or entity might take risks or behave irresponsibly because they are insulated from the consequences of those actions. In Lewis's situation, being careless with electronics in his store reflects a lack of concern for the potential negative outcomes of his behavior, knowing that any resulting losses might be covered by insurance. This type of behavior aligns with moral hazard, as it demonstrates how individuals may act less cautiously when they believe they won't bear the full brunt of the financial impact.

In contrast, physical hazard pertains to tangible conditions that increase the likelihood of a loss, such as having a dangerous or poorly maintained environment. Soft fraud involves misleading statements or actions for insurance gain, and negligence focuses on the failure to take reasonable care, which may not necessarily be influenced by the idea that one is shielded from consequences. Overall, Lewis's actions exemplify moral hazard because they illustrate a reckless attitude stemming from the belief that he is protected against potential losses through his insurance policy.