A peril is _____________.

Question

Question: A peril is

Options:

1.  A moral hazard
2.  The cause of a loss
3.  A condition that increases the chance of a loss
4.  The probability that a loss will occur

Answer 1

2. The cause of a loss

A peril is the cause of a loss.

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Explanation:

A peril is an event or situation that causes or may potentially cause a loss. Examples of accidents include fire, flood, hailstorms, hurricanes, typhoons, car accidents or domestic accidents.