Multiple choice

Which of the following is true about physical hazards?

  1. They are not important for rate making.

  2. They cannot be ascertained.

  3. They can be calculated from the balance sheet.

  4. They can be ascertained from information given in a proposal form.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Physical hazards indicate those dangers of the subject matter of insurance which can be ascertained or identified by mere inspection of the risk. The hazards are apparent in the subject-matter itself. 

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