01.Core Concepts

A peril is defined as the cause of the loss. Examples include property damage because of fire, windstorm, or lightning, or damage to your car because of a collision with another vehicle. A hazard is a condition that creates or increases the frequency or severity of loss A physical hazard is a physical condition that increases the frequency or severity of loss Moral hazard is dishonesty or character defects in an individual that increase the frequency or severity of loss