Question

    What are physical hazards in underwriting?

    A Tangible factors arising from the nature of the risk itself. Correct Answer Incorrect Answer
    B Intangible human aspects of a risk. Correct Answer Incorrect Answer
    C Financial condition of the insured Correct Answer Incorrect Answer
    D The insured's past claims history Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Physical hazards are tangible factors related to the property or activity being insured that increase the likelihood of a loss. Examples include the construction of a building, the location of a property, or the condition of machinery.

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