Ace the 2026 RIBO Exam – Boost Your Insurance Broker Swagger!

A hazard in the context of insurance refers to a condition or situation that increases the likelihood of a loss or negative event occurring. In this case, bare electrical wires present a significant danger as they can potentially lead to electrical shocks, short circuits, or even fires. This represents a clear example of a hazard because it increases the risk of damage or loss.

The other options represent safety measures or good practices rather than hazards. For instance, secure locks on doors and secure shelving in a basement are indicators of safety and protection against theft or injury. Insurance agent oversight, while important for proper management and compliance in insurance practices, does not fall under the category of a physical hazard impacting insured properties.