General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In health insurance, which of the following is best described as a peril?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A peril is the actual cause of loss. In health insurance, the peril is the sickness, disease, or accidental injury that produces the claim — a diagnosis of cancer is the event that causes the financial loss. Conditions such as family history, smoking, or inactivity are hazards that increase the likelihood of the peril occurring.
Why the other options are wrong
- B) Family history is a condition that increases the chance of disease, making it a hazard, not a peril.
- C) Smoking is a behavioral hazard that raises the probability of illness.
- D) A sedentary lifestyle is a hazard, a condition that worsens or invites the peril.
Memory hook
The peril is the disease that bills you; the hazard is everything that made it more likely.