Question 1022 of 303 · California Life-Only Agent Exam
Which of the following best describes the relationship between a hazard and a loss?
Exactly one answer is correct.
You got of questions right. Here on the question pages nobody remembers which ones you got wrong. The trainer saves your progress and asks the mistakes again until they stick.
Or free: the 10 questions most people get wrong
Show solution
Correct answer to question 1022
- D: A hazard increases the likelihood or severity of a loss from a peril
Explanation
Hazards are conditions that affect the chance or size of a loss. The peril is what causes the loss.
More questions: Basic Insurance Concepts and Principles
- 1023An insurer that sells a large number of similar policies is relying on which concept to make costs predictable?
- 1024Profitable distribution of exposures means that an insurer
- 1025Which statement about a risk that is ideally insurable is correct?
- 1026A person who buys a lottery ticket is taking
- 1027What is the difference between a peril and a hazard?
- 1028Which of the following is an example of the sharing method of managing risk?