Dense fog that increases the chance of an automobile accident is an example of a
A)speculative risk.
B)peril.
C)physical hazard.
D)moral hazard.

Question

Quizplus · Accepted Answer

A physical hazard is a condition that increases the likelihood of loss due to damage or destruction of property or injury to persons. Dense fog creates a hazardous driving condition, which is a physical hazard. A speculative risk is a risk that may result in either loss or gain, such as gambling. A peril is a specific cause of loss, such as fire, theft, or death. A moral hazard is a situation in which a person may be more likely to take risks because the potential costs will be borne by others. None of these options apply to the situation described in the question.

Dense Fog That Increases the Chance of an Automobile Accident