What behavior exemplifies a morale hazard?

A morale hazard occurs when an individual's behavior or attitude changes as a result of having insurance, leading to riskier or more careless actions because they feel protected. Leaving car keys in an unlocked vehicle represents this concept, as the action increases the likelihood of theft due to a lack of caution. The individual may feel secure because they believe insurance will cover the loss, hence demonstrating a careless attitude that reflects the essence of a morale hazard.

The other choices represent different concepts. Submitting a fraudulent insurance claim involves intentional deceit for personal gain, which is a moral hazard, not a morale hazard. Negotiating a higher insurance payout suggests an attempt to maximize benefits without directly implying a change in behavior due to insurance. Ignoring safety regulations is related to negligence or a disregard for rules, but it does not specifically highlight the attitude shift induced by having insurance that is characteristic of a morale hazard.