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Question: 1 / 470

How is a person's alcoholism classified in an insurance context?

Condition

Risk

Hazard

In the context of insurance, alcoholism is classified as a hazard. A hazard refers to a condition or situation that increases the likelihood of a loss occurring. In this case, a person’s alcoholism poses a greater risk to their health and increases the probability of potential health issues, which can lead to insurance claims.

This classification is essential for insurers when evaluating a person’s overall risk profile. Understanding alcoholism as a hazard allows insurance companies to assess how it might impact an individual's health deterioration or the likelihood of claims related to medical treatments stemming from alcohol dependency.

Other terms such as "condition," "risk," and "disability" do exist in the insurance terminology but apply differently. While alcoholism can be viewed as a medical condition impacting an individual’s life, in the specific context of insurance evaluation, it is categorized under hazards due to its implications for risk assessment.

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