Problem
Many auto insurance policies have "uninsured motorist" provisions that pay the insured if his car is involved in a hit-and-run accident or one in which the other party does not carry insurance. Here moral hazard is reversed and threatens the insured person. Explain why, and give the argument in terms of a principal/agent model.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.