A homeowner intentionally sets fire to their dwelling to collect insurance proceeds. This conduct is classified as which type of hazard?

Why this is the answer

Hazards are conditions that increase the likelihood or severity of loss. A moral hazard involves dishonest or fraudulent intent by the insured — arson-for-profit is the textbook example. A morale (or attitudinal) hazard is carelessness or indifference encouraged by the existence of insurance, not dishonesty. A physical hazard is a tangible condition like worn wiring or oily rags. 'Fundamental hazard' is not a recognized category.