NATURE OF INSURANCE, RISK, PERILS AND HAZARDS EXAM 2025(100% RATED A+)

peril - ANSWERcause of loss an immediate, specific event that causes a loss. Perils can also be referred to as the accident itself. Physical hazards - ANSWERphysical or tangible conditions existing in a manner that makes a loss more likely to occur. Moral hazards - ANSWERmake the loss more likely to occur due to the dishonest character of the insured, who may be more disposed to either engage in criminal activity or cause a loss because of their negative habits. Morale hazard (attitudinal hazard) - ANSWERA condition of carelessness or indifference that increases the frequency or severity of loss. created based as a result of the personal or subjective thought process of the insured. insurance contract - ANSWERRisk can be transferred or passed from one party to another through an insurance contract. Substandard risks - ANSWERare considered to be a poor risk for the insurance company and have a higher potential for loss. Loss - ANSWERdefined as an unintended, unforeseen reduction, or destruction of financial or economic value. Direct Loss - ANSWERwhen a person or property is damaged, destroyed, or killed by a peril, without any intervening cause Indirect Loss/Consequential Loss - ANSWERoccurs as a consequence of the direct loss; fire would be a direct loss; loss of rental dollars due to fire would be the indirect