The cause of a possible loss, such as fire windstorm theft etc. is known as ______.

Question

Question: The cause of a possible loss, such as fire windstorm theft etc. is known as _______.

Options:

1.  Peril
2.  Barratry
3.  Both
4.  None

Answer 1

1. Peril

The cause of a possible loss, such as fire windstorm theft etc. is known as Peril.

---

More information:

Peril is a specific risk or cause of loss is covered by insurance policy, such as fire, storm, flood, or theft.

A risk-based policy covers only the policyholder with risks identified in the policy as opposed to a hazardous policy, which covers all causes of loss except those specifically specified.