Hazards
Akopọ
Two traders in the same market insure identical shops for the same sum, yet one pays a far higher premium than the other, and one is quietly refused cover altogether. The difference is not the risk they carry but the hazard they bring to it: the conditions, and the conduct, that make a fire or a theft more likely to happen and more costly when it does.
In this lesson you will learn exactly what a hazard is and how it differs from a peril and from a risk, meet the three hazards every examiner expects you to know apart (physical, moral and the easily confused morale), see how each one pushes up the frequency or the severity of a loss, and follow how an underwriter hunts for hazard on a proposal form and decides what to do about it.
Awọn Afojusun
- Define a hazard and explain how it differs from a peril and from a risk
- Identify and describe physical, moral and morale hazards
- Explain how each type of hazard increases the likelihood or severity of a loss
- Describe how insurers detect and control hazard when underwriting a proposal
Àwòrán ọpọlọ
A ti ṣe àwòrán kókó yìí kí o lè rí bí àwọn èrò ṣe so pọ̀.
Káàdì ìrántí
Ìdánrawò kíákíá lórí ohun tí wọ́n ń dán wò nínú kókó yìí.
Akọ̀wé Ẹ̀kọ́
Forúkọsílẹ̀ láti Tẹ̀síwájú
Ṣẹda àkọọlẹ ọfẹ kan láti wọlé sí gbogbo àwọn oríṣìíríṣìí ìkànsí ikẹ́kọ̀ọ́, àwọn ìbéèrè ìdánwò, àti láti tọpa ìlọsíwájú rẹ.
Ìdánwò Ẹ̀kọ́
Oriire fun ipari ẹkọ lori Hazards. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.
Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.
Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.
- A hazard is best described as: A. The actual cause of a loss B. The uncertainty that a loss will occur C. A condition that increases the frequency or severity of a loss D. The amount payable when a loss occurs Answer: C
- Which of the following is a peril rather than a hazard? A. Defective electrical wiring B. Flood C. Storing petrol indoors D. A watchman who sleeps on duty Answer: B
- A trader secretly sets fire to unsold stock in order to claim on the policy. This is an example of: A. Physical hazard B. Morale hazard C. Legal hazard D. Moral hazard Answer: D
- A driver stops locking his car because he knows it is fully insured. This carelessness is an example of: A. Moral hazard B. Morale hazard C. Physical hazard D. A peril Answer: B
- A risk carries a 4% chance of a loss, and each loss averages 2,000,000 naira. The expected loss is: A. 8,000 naira B. 80,000 naira C. 500,000 naira D. 800,000 naira Answer: B
Forúkọsílẹ̀ láti Tẹ̀síwájú
Ṣẹda àkọọlẹ ọfẹ kan láti wọlé sí gbogbo àwọn oríṣìíríṣìí ìkànsí ikẹ́kọ̀ọ́, àwọn ìbéèrè ìdánwò, àti láti tọpa ìlọsíwájú rẹ.
Forúkọsílẹ̀ láti Tẹ̀síwájú
Ṣẹda àkọọlẹ ọfẹ kan láti wọlé sí gbogbo àwọn oríṣìíríṣìí ìkànsí ikẹ́kọ̀ọ́, àwọn ìbéèrè ìdánwò, àti láti tọpa ìlọsíwájú rẹ.
Awọn Iwe Itọsọna Ti a Gba Nimọran
Ibeere Atunyewo
Ṣe o n ronu ohun ti awọn ibeere atijọ fun koko-ọrọ yii dabi? Eyi ni nọmba awọn ibeere nipa Hazards lati awọn ọdun ti o kọja.
Ibeere 1 Ìròyìn
(a) Explain the following terms used in insurance.
(i) peril
(ii) hazard.
(iii) disclosure.
(b) Differentiate . between the following classes of risks: (i) pure and speculative risks; particular and fundamental risks; (iii) static and dynamic risks.
Awọn alaye Idahun
(a) Explanation of terms used in insurance
- (i) Peril: A peril is the actual cause of a loss, that is, the event or contingency that gives rise to damage, injury or destruction. Examples are fire, flood, accident, theft, storm and death. It is the immediate reason why a loss occurs and is what an insurance policy is taken out to protect against.
- (ii) Hazard: A hazard is a condition or circumstance that increases the chance (frequency) or severity of a loss arising from a peril. It does not cause the loss directly but makes it more likely or more serious. A physical hazard relates to the physical characteristics of the risk (for example, storing petrol near a fire), while a moral hazard relates to the attitude, honesty or carelessness of the insured (for example, deliberate carelessness or fraud).
- (iii) Disclosure: Disclosure is the duty of the proposer, under the principle of utmost good faith (uberrimae fidei), to reveal voluntarily and truthfully all material facts that could influence the insurer's decision to accept the risk or fix the premium. Failure to disclose such facts (non-disclosure or concealment) can make the contract voidable at the option of the insurer.
(b) Differences between the classes of risk
| Basis | First type | Second type |
|---|---|---|
| (i) Pure vs Speculative | Pure risk gives only two outcomes: loss or no loss. There is no chance of gain (e.g. fire, death, accident). Pure risks are insurable. | Speculative risk gives three outcomes: loss, no loss or gain. It is deliberately undertaken in the hope of profit (e.g. gambling, business trading). Speculative risks are generally not insurable. |
| (ii) Particular vs Fundamental | Particular risk is personal and localised in its cause and effect, affecting only an individual or a few persons (e.g. a house fire, a motor accident). Particular risks are usually insurable. | Fundamental risk is impersonal in origin and widespread in effect, affecting the whole society or large groups (e.g. war, earthquake, flood, inflation, epidemic). Most fundamental risks are the responsibility of the state and are largely uninsurable. |
| (iii) Static vs Dynamic | Static risk occurs whether or not there is a change in the economy; it results from natural causes or human dishonesty (e.g. fire, theft, perils of nature). It is regular, predictable and insurable. | Dynamic risk arises from changes in the economy or society, such as changes in price levels, technology, consumer taste, income or government policy. It is less predictable and generally uninsurable. |