Which term describes a condition or circumstance that makes a loss from a given peril more likely or more severe?

Which term describes a condition or circumstance that makes a loss from a given peril more likely or more severe?

• A. Exposure
• B. Incident
• C. Loss
• D. Hazard

Answer: (D)

Hazard refers to a condition or circumstance that makes a loss from a given peril more likely or more severe. For example, icy stairs create a physical hazard because they raise the chance of slipping and injuring yourself, and they can also worsen the severity of injuries if a fall occurs. This concept focuses on the factors that amplify risk, not the amount at risk (exposure), the event itself (incident), or the actual damage (loss). Exposure describes what value or how many people are at risk, an incident is the happening that could trigger a loss, and a loss is the actual damage or financial consequence that results.

Hazard refers to a condition or circumstance that makes a loss from a given peril more likely or more severe. For example, icy stairs create a physical hazard because they raise the chance of slipping and injuring yourself, and they can also worsen the severity of injuries if a fall occurs. This concept focuses on the factors that amplify risk, not the amount at risk (exposure), the event itself (incident), or the actual damage (loss). Exposure describes what value or how many people are at risk, an incident is the happening that could trigger a loss, and a loss is the actual damage or financial consequence that results.