General Insurance
A homeowner stores petrol in an attached garage. In risk terms, what is the petrol?
Answer and explanation
Answer: A. A hazard is a condition that increases the likelihood or severity of a loss, which is what stored petrol does. The peril is the cause of loss itself, such as fire; the loss is the reduction in value when it happens; and the exposure is the property or person at risk.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, General Insurance, risk management key terms
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