Which scenario could exemplify "moral hazard"?

Moral hazard refers to the situation where an individual or entity takes on greater risks because they are insulated from the consequences, typically due to insurance coverage. The scenario that best illustrates this concept is when a driver speeds more after purchasing comprehensive auto insurance. In this case, the driver feels less financial risk associated with potential accidents or damages because they know their insurance will cover certain losses. This change in behavior, where the individual engages in riskier activities due to the protection provided by insurance, is a classic example of moral hazard.

The other scenarios involve actions that generally promote safety or financial responsibility rather than increase risk. Saving more with a retirement policy, installing a security system, or improving safety protocols all indicate measures taken to reduce risk and mitigate potential losses and do not exemplify moral hazard.