How is peril defined in insurance terms?

In insurance terminology, peril is defined as a specific risk or cause of loss that is covered by an insurance policy. This definition highlights the nature of perils as identifiable events or situations that can lead to damage or loss and thus trigger an insurance claim. For example, perils can include fire, theft, flood, or natural disasters, which must be explicitly stated in the insurance policy for coverage to apply. Understanding perils is fundamental for both insurers and insureds, as it outlines what risks are managed and protected against under the terms of the insurance agreement.

The other choices do not accurately reflect the definition of peril. The first option describes a general risk, which is broader and does not pinpoint a specific cause of loss. The third choice pertains to the terms and conditions of an insurance policy, which encompass a wider array of components than just the perils covered. Finally, the fourth option focuses on claims rather than perils, making it unrelated to the specific definition required in this context.