[amp_mcq option1=”Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying” option2=”Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk” option3=”Perils are factors which affect the risk being insured and hazards are the size of the risk being insured” option4=”Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout” correct=”option2″]<\/p>\n
The correct answer is: B. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk.<\/strong><\/p>\n Perils are the events that could cause a loss, such as death in the case of term insurance. Hazards are the factors that increase the likelihood of a peril occurring, such as smoking or obesity.<\/p>\n For example, if a policyholder is a smoker, they are more likely to die before a specified date than a policyholder who is not a smoker. This is because smoking is a hazard that increases the risk of death.<\/p>\n Insurance companies use perils and hazards to calculate the premium for a policy. The higher the risk of a peril occurring, the higher the premium will be.<\/p>\n It is important to understand the difference between perils and hazards so that you can make informed decisions about your insurance coverage.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying” option2=”Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk” option3=”Perils are factors which affect the risk being insured and hazards are the … <\/p>\n