How are perils and hazards normally distinguished under term insurance policies?

A) Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying B) Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk C) Perils are factors which affect the risk being insured and hazards are the size of the risk being insured D) Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout

Answer & Solution

Correct Answer: Option B

Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.

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Sri Doondika 6 years ago

The components of risk include

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How are perils and hazards normally distinguished under term insurance policies...

How are perils and hazards normally distinguished under term insurance policies?

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