SCI CLUS02 Practice Questions - SCI CLUS02 Risk Management, Insurance And Retirement Planning Examination Exam

A physical hazard applies only to property insurance, whereas a moral hazard applies exclusively to group health policies. A physical hazard stems from regulatory non-compliance, whereas a moral hazard is caused by natural disasters. A physical hazard is a physical condition that increases loss frequency or severity, whereas a moral hazard involves dishonesty or character defects that lead to intentional losses. A physical hazard reduces expected loss severity, whereas a moral hazard increases insurance premium tax rates.