Which of the following is NOT a characteristic of a morale hazard?

Morale hazard is a concept in insurance that refers to an individual's indifferent attitude towards loss because they have insurance coverage. The correct choice, which describes something that is NOT characteristic of morale hazard, is the careful management of risk.

When a person manages risk carefully, they take proactive steps to prevent loss and minimize potential hazards. This management is in direct contrast to the indifference or careless behavior associated with morale hazards, where the insured individual may take greater risks or show little concern for losses because they believe they will be compensated through insurance.

The other options reference behaviors and attitudes that can contribute to morale hazards. Indifference to losses shows a lack of concern for the financial impact of potential accidents. Unintentional actions leading to higher risks illustrate how a lack of caution can inadvertently increase exposure to loss. Poor safety practices are consistent with a morale hazard since they reflect negligence and a disregard for minimizing risk. Therefore, careful management is distinctly different from the characteristics of morale hazards, making it the correct answer.