What action exemplifies a morale hazard?

Morale hazard refers to the increased risk of loss or damage that arises from an individual's carelessness or lack of concern for safety, often due to having insurance coverage. In this context, neglecting to secure a property properly illustrates a morale hazard because it indicates an individual's complacency or indifferent attitude toward the protection of their property, primarily because they feel insured against any potential loss. The insured party may take fewer precautions, believing that any potential loss will be covered by their insurance policy.

Other actions, such as intentionally burning a vehicle for insurance money, represent fraudulent behaviors or criminal intent, rather than carelessness or negligence. Leaving flammable items unattended while cooking and driving under the influence do indicate risky behaviors but do not encompass the same concept of indifference to risk due to insurance coverage. Thus, the best representation of a morale hazard in this scenario is the act of neglecting to secure property properly.