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Questions and Answers
Which one of the following best describes a peril?
Which one of the following best describes a peril?
- A physical condition that increases the frequency or severity of loss
- Dishonesty or character defects in an individual that increase the frequency or severity of loss
- The cause of the loss in an auto accident (correct)
- A condition that increases the chance of loss
What is a hazard?
What is a hazard?
- A physical condition that increases the frequency or severity of loss
- A condition that increases the chance of loss (correct)
- Dishonesty or character defects in an individual that increase the frequency or severity of loss
- The cause of the loss in an auto accident
What is a physical hazard?
What is a physical hazard?
- Dishonesty or character defects in an individual that increase the frequency or severity of loss
- A physical condition that increases the frequency or severity of loss (correct)
- A condition that increases the chance of loss
- The cause of the loss in an auto accident
Which one of the following best describes a moral hazard?
Which one of the following best describes a moral hazard?
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What is the definition of a peril?
What is the definition of a peril?
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What is the definition of a hazard?
What is the definition of a hazard?
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Study Notes
Definitions and Descriptions
- A peril refers to a specific risk or event that can cause loss or damage, such as fire, theft, or natural disasters.
- A hazard is a condition or situation that increases the likelihood of a peril occurring, potentially leading to damage or loss.
Types of Hazards
- Physical hazard is a tangible condition that poses a risk to health or safety, including environmental factors like slippery floors or exposed electrical wiring.
Moral Hazard
- Moral hazard occurs when an individual or entity takes risks because they do not bear the full consequences of their actions, often due to insurance or other protective measures that lessen the impact of loss.
Summary of Terms
- Peril: Specific events causing loss.
- Hazard: Conditions increasing risk of peril.
- Physical hazard: Tangible risks.
- Moral hazard: Risk-taking behavior due to reduced consequences.
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Description
Test your knowledge on perils, hazards, and the different types of hazards that can contribute to loss in various situations. Explore the definitions and characteristics of physical and moral hazards in this informative quiz.
