Which of the following can be considered an example of a hazard?

Which of the following can be considered an example of a hazard?

• A. Driving under the influence
• B. High premiums
• C. Low credit score
• D. Natural disaster

Answer: (A)

Driving under the influence is considered a hazard because it increases the likelihood of an accident. In insurance terms, a hazard is anything that increases the chance of a loss occurring. In this scenario, driving while impaired by alcohol or drugs creates a dangerous situation not only for the driver but also for others on the road. This reckless behavior significantly raises the probability of accidents, potentially leading to significant insurance claims for injuries or damages. Other choices may relate to risk or financial implications in insurance but do not directly represent hazards that increase the chance of a loss occurring in the same way that impaired driving does.

Driving under the influence is considered a hazard because it increases the likelihood of an accident. In insurance terms, a hazard is anything that increases the chance of a loss occurring. In this scenario, driving while impaired by alcohol or drugs creates a dangerous situation not only for the driver but also for others on the road. This reckless behavior significantly raises the probability of accidents, potentially leading to significant insurance claims for injuries or damages. Other choices may relate to risk or financial implications in insurance but do not directly represent hazards that increase the chance of a loss occurring in the same way that impaired driving does.