Peril & Hazards

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4 Terms

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PERIL

That which gives rise to a loss ( eg. A fire in a house, the fire is the PERIL)

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HAZARD

That which Influences the operation or effect of a peril (eg smoking in house is a hazard)

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Physical Hazards

Factual and measurable (eg construction to property or age of proposed car)

4
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Moral Hazard

Arises from attitude or behaviour of people (eg the conduct of insured/insured employees)