In relation to insurance, a poor hazard is usually:

The identification of a poor hazard as something that increases the risk of a loss arising under a policy is accurate in the context of insurance. A poor hazard represents a scenario or condition that elevates the likelihood of a claim occurring. Insurers assess various hazards when underwriting a policy; a poor hazard typically indicates that the risk associated with the insured party or property is higher than average, leading to potential difficulties in achieving coverage or necessitating higher premiums.

Understanding why a poor hazard increases the risk of loss is essential for underwriters. They need to evaluate not only the conditions under which the insured operates but also any external factors that could heighten the chance of a loss occurring. When evaluating these hazards, underwriters may restrict coverage or impose special terms to mitigate the elevated risk presented by the poor hazard.

In contrast to this correct answer, a risk that can only be covered under special terms relates to specific underwriting practices rather than the inherent qualities of the hazard. The notion that something must be removed for a proposal to be accepted speaks to underwriting criteria but does not directly define the nature of a poor hazard itself. Lastly, an event that is listed within a policy as an insured event pertains to coverage specifics rather than the risk factors contributing to losses associated with poor hazards.