People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and compensate the person who lost.
Anything of monetary value that is owned by a person is called as an ASSET.
Physical assets - Car or Building, Non-Physical Assets - Name and Goodwill, Personal Assets - Eyes, Limbs, Parts of Body etc
Assets may get damaged due to Accidental occurances. PERIL is the cause of the loss. The event, whose occurrence actually leads to the loss, is known as a peril
Hazard is a condition that increases the chances of loss. Lung Cancer is a PERIL. Smoking which increases the chances of Lung Cancer is a HAZARD
MODELEXAM® 
www.realsoftinfoplan.com