Other Than Life (OTL) Agent’s Exam A Practice

Peril is the specific event or circumstance that can cause a loss. It’s the trigger that, if it occurs, could lead to a claim. That’s why this option fits best: it names the actual event that may cause the loss, rather than the chance of loss, the loss itself, or the outcome. For example, fire, flood, or theft are perils because each is a concrete event that could produce a loss. Keep in mind that a hazard is a condition that makes a peril more likely (like faulty wiring increasing fire risk), not the event that causes the loss.