General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A hazard is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A hazard is any condition, situation, or trait that makes a peril more likely to produce a loss - for example, careless habits, dangerous hobbies, or a hazardous occupation. Hazards are classified as physical, moral, or morale. They do not cause the loss themselves; they increase the probability that a covered peril will result in loss, and underwriters weigh them when classifying risks.
Why the other options are wrong
- B) The event that causes the loss is the peril.
- C) The uncertainty of loss is risk.
- D) Renewability is a policy right, not a hazard.
Memory hook
Hazard = the thing that raises the odds. Peril = the thing that does the damage.