General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insured slips on an icy sidewalk, falls, and fractures a hip, incurring hospital bills. In this scenario, the peril is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The peril is the actual cause of the loss, which here is the accidental fall resulting in the fracture. The icy sidewalk is a physical hazard because it is a tangible condition that increased the likelihood of the fall. The hospital bill is the financial loss that followed from the peril. The insured's age is a rating or underwriting factor, not the cause of this particular loss. Correctly separating peril, hazard, and loss is essential to claims analysis and policy interpretation.
Why the other options are wrong
- A) The icy sidewalk is a physical hazard, a tangible condition that increased the chance of the loss rather than the cause of it.
- C) The hospital bill is the financial loss, which is the result of the peril rather than its cause.
- D) Age is a rating factor used in underwriting, not the cause of this particular injury.
Memory hook
Peril is the accident itself; the ice and the bill are supporting players.