Peril vs Hazard
During a risk management review, a financial planner is explaining the difference between perils and hazards to a client.
Which of the following correctly identifies a peril and a hazard?
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- Peril: Fire destroying a home
- Hazard: Faulty wiring in the home
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- Peril: Ice on the sidewalk
- Hazard: Slipping and breaking a leg
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- Peril: Car left unlocked in a parking lot
- Hazard: Theft of the car
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- Peril: Negligence by a driver who runs a red light
- Hazard: Collision with another vehicle
