Question

Many jurors assume the defendant has insurance coverage and therefor no harm is done by awarding the plaintiff damages. What are the moral hazards? What is the affect on insurance premiums on consumers?

Answer 1

In fact, awarding the plaintiff damage by the Jurors is only an assumption but not a fact. Not depending on actual fact and assuming on the ability or affordability causes moral hazards. One should be clear about the fact or facts before drawing conclusions and awarding judgement, ,such assumption, surely have negative affects on insurance companies, as a small of which consumers face some loss, , because of the loss caused to the company. Hence, it is always better to depend on facts, , assumptions or imaginations