An earthquake is an example of a
A)moral hazard.
B)peril.
C)physical hazard.
D)objective risk.

Question

Quizplus · Accepted Answer

An earthquake is a type of peril, which is defined as a cause of loss or damage. It is not a moral hazard, which refers to a behavioral tendency that increases the probability of a loss. It is also not a physical hazard, which refers to a condition or situation that increases the probability of a loss. While an earthquake is a type of objective risk, which is a risk that exists independently of anyone's knowledge or perception of it, it is not the most appropriate choice among the options given.

An Earthquake Is an Example of a