Moral hazard
Black's Law Dictionary · Henry Campbell Black, M.A. · 1910
Black's Law Dictionary
In fire insurance. The risk or danger of the destruction of the insured property by fire, as measured by the character and interest of the insured owner, his habits as a prudent and careful man or the reverse, his known integrity or his bad reputation. and the amount of loss he would suffer by the destruction of the property or the gain he would make by suffering it to bum and collecting the insurance.
See Syndicate Ins. Co., v. Bohn. 65 Fed. 170, 12 C. a A. 531, 27 In R. A. 614.