Which term best exemplifies a condition or situation that contributes to an increased risk of loss?

The term "hazard" refers to a condition or situation that increases the likelihood of a loss occurring. In the context of insurance and risk management, hazards can create or enhance the risk that a peril will lead to a loss. For example, an unmaintained roof might be a hazard that increases the risk of water damage (the peril) occurring in a building.

Exposure, while related, specifically refers to the extent to which a person or entity is subject to loss or damage. It’s more about the presence of a risk, rather than the condition that increases it.

Risk is a broader term that encompasses the possibility of loss or damage happening and doesn't focus specifically on those conditions that lead to increased likelihood.

Peril is the specific event or cause that can lead to a loss, such as fire, theft, or flood, rather than the condition that increases the risk of that loss occurring.

Thus, "hazard" is the most accurate term to describe a contributing condition to increased risk of loss.