General Insurance PrinciplesQuestion 181 of 716
An applicant for life insurance has uncontrolled high blood pressure. This condition is BEST classified as which type of hazard?
a.Physical hazard
b.Legal hazard
c.Moral hazard
d.Morale hazard
Explanation
A physical hazard is a tangible condition that increases the chance of loss, such as high blood pressure, obesity, or a slippery floor. A moral hazard involves dishonesty, a morale hazard involves carelessness because of insurance, and a legal hazard arises from the legal environment.
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)