Arkansas Insurance Adjuster Practice Exam

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Which of the following is considered a hazard?

  1. Buying a lottery ticket every day

  2. Owning an extremely valuable exotic car

  3. Home destroyed by a massive earthquake

  4. Living in an earthquake-prone area

The correct answer is: Living in an earthquake-prone area

Living in an earthquake-prone area is considered a hazard because it increases the risk of experiencing damaging and potentially life-threatening earthquakes. The other options are incorrect because they do not pose the same level of immediate danger or potential for harm. Buying a lottery ticket every day may be financially risky but it is not considered a physical hazard. Owning an extremely valuable exotic car may be a financial investment but it is not inherently dangerous to one's safety. Having a home destroyed by a massive earthquake is a consequence of living in an earthquake-prone area, but it is not the hazard itself.

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