Which hazard results from unintentional actions by the insured?

The correct answer is morale hazard. This type of hazard arises from the insured's behavior and attitudes rather than from the physical aspects of the risk itself. Morale hazards occur when individuals engage in riskier behavior because they are insured. For instance, a person may be less careful with their property or take less precaution after obtaining insurance, assuming any potential loss will be covered.

Unlike moral hazards, which stem from dishonesty or intentional actions (e.g., insurance fraud), and physical hazards, which relate to the tangible characteristics of a situation (like a dangerous building structure), morale hazards are specifically tied to the attitudes of the insured towards risk due to their insurance coverage. Legal hazards involve the laws and regulations affecting an insured's risks but are not connected to the individual's actions. Therefore, morale hazards accurately describe unintentional actions resulting from the insured's mindset towards risk.