What is John's act of deliberately causing property damage to collect an insurance claim considered?

John's act of deliberately causing property damage to collect an insurance claim is considered a moral hazard. A moral hazard occurs when an individual's behavior changes as a result of having insurance coverage, leading them to take risks they otherwise would not take. In this case, John's intentional actions to cause damage for personal gain demonstrate a disregard for ethical standards and the integrity of the insurance system.

This concept indicates that when people are insulated from risk through insurance, they may behave less responsibly. Hence, behaviors like John's—where an insured individual engages in fraudulent activities to benefit from their insurance policy—clearly exemplify moral hazard. It highlights the ethical implications of manipulating circumstances to exploit insurance benefits.