The cause of potential loss is referred to as a peril. Conditions that increase the seriousness or likelihood are referred to as hazards. Which of the following are the four types of recognized hazards that can contribute to losses?

Question

Quizplus · Accepted Answer

The four types of recognized hazards are physical, moral, morale, and legal hazards. Physical hazards are the material, structural or operational elements of a risk. The moral hazards are people's habits and values, while morale hazards stem from carelessness or irresponsibility. Legal hazards are court actions that can increase the likelihood or size of the loss.

The Cause of Potential Loss Is Referred to as a Peril